KPDN To Phase Out Foreign Card Payments For RON95 At Petrol Stations Starting Wednesday

Users with foreign credit or debit cards will instead need to pay at the counter.

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The use of foreign credit and debit cards to purchase RON95 at all petrol stations nationwide will be blocked in stages starting Wednesday, 1 April

Domestic Trade and Cost of Living Ministry (KPDN) enforcement director-general Datuk Azman Adam said the move aims to ensure that RON95 subsidies are enjoyed only by eligible citizens and to prevent misuse by unauthorised parties, including owners of foreign-registered vehicles.

"This is among the new mechanisms to control the purchase and sale of RON95 at all petrol stations in the country.

"Previously, there have been many cases where foreign-registered vehicles filled up using foreign debit or credit cards at self-service terminals.

"Consequently, it was difficult for station operators and authorities to detect if they were purchasing RON95 petrol," Berita Harian quoted him as saying yesterday, 29 March.

This comes after Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali's announcement in February this year that the move is among several additional mechanisms being studied to tighten enforcement under the BUDI95 targeted subsidy system.

Domestic Trade and Cost of Living Ministry enforcement director-general Datuk Azman Adam

Domestic Trade and Cost of Living Ministry enforcement director-general Datuk Azman Adam

Image via Berita Harian

Azman explained that KPDN, in collaboration with oil companies, will gradually block such transactions

Users with foreign credit or debit cards will instead be required to make their payments at the counter.

He noted that this measure would make it easier for station operators and enforcement officers to monitor compliance with existing regulations.

"For stations with more than 15 pumps, for example, it is difficult for them to detect leakages. By requiring users to pay at the counter, we can ensure that ineligible users cannot fill up with RON95.

"Several oil companies are already fully prepared, while others will begin implementing this in stages," he added.

RON95
Image via Berita Harian

Meanwhile, Azman said KPDN is implementing a more aggressive strategy to face any fuel supply disruptions that could directly impact the national economy

This includes the full enforcement of the ban on the sale and purchase of RON95 petrol for foreign-registered vehicles, effective 1 April.

On the same date, petrol station licensees in Sabah, Sarawak, and Labuan have also been directed to regulate the sale of diesel to land transport vehicles according to category, with transaction limits set at 50 litres, 100 litres, and 150 litres.

He said the move aims to ensure that subsidised diesel, priced at RM2.15 per litre in Sabah, Sarawak, and Labuan, is not exploited by smuggling syndicates or ineligible industrial sectors, while guaranteeing that the subsidy benefits Malaysians.

"A total of 2,400 KPDN enforcement officers nationwide are on standby to carry out inspections and monitoring on the ground," he said.

subsidies are limited to eligible Malaysians
Image via Yusof Isa/Malay Mail
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