Fines to be raised against petrol stations and oil companies to stop selling subsidized fuel to foreign cars.
Domestic Trade and Cost of Living Minister Datuk Amit Chiam said the government plans to step up enforcement against subsidized fuel failures, including higher fines for petrol station operators and oil companies that sell subsidized fuel to foreign-registered vehicles.
He said the government is planning to implement targeted subsidies, including for fuel, while enforcement must also be stepped up to ensure the law is enforced.
“This will include higher penalties for petrol station operators who sell subsidized petrol to foreign-registered vehicles.”
In an interview with The Star, Amizan said the proposed higher penalties on oil companies were to make them vigilant in monitoring the operations of petrol station operators to avoid the loss of government subsidies.
“These are some of the parts we are looking at. It will be discussed further before a decision is taken.”
Under the Control of Supply Act 1961, it is an offense to sell RON95 petrol to foreign-registered vehicles, and if found doing so, petrol station operators can be fined up to RM1 million for a first offense, and up to RM3 million for a repeat offense, or imprisoned for up to three years, or both.
Oil companies selling RON95 and diesel to foreign-registered vehicles can be fined up to RM2 million for the first offense and up to RM5 million for subsequent offenses.