Malaysia’s ban on petrol sale to foreign registered vehicles within a 50km radius of its borders is causing quite a stir.

In neighbouring Singapore, where inflation has hit a 26-year high of 7.5 per cent in April, motorists are quickly putting the brakes on plans to travel up north. Between the three-quarter tank rule for all cars entering Malaysia from the city state and the new 50km rule, it makes little sense for drivers to continue their practice of filling up at Malaysian petrol kiosks.

Channel News Asia: Malaysia to ban border fuel sales to foreigners

Malaysia will ban petrol stations on its borders with Thailand and Singapore from selling fuel to foreigners, in an attempt to contain the spiralling cost of subsidies, reports said on Tuesday.

“It’s the question of principle because you are talking about taxpayers’ money, and taxpayers’ money being used to subsidise petrol for those not entitled to receive the subsidy,” said Deputy Prime Minister Najib Razak.

“Our level of subsidy is very high,” he told a press conference.

Domestic Trade Shahrir Samad said the ban on sales to foreign vehicles would be enforced from Friday and remain in place until the government unveils a new mechanism for selling subsidised fuel to the public.

“This move is a stern act by the government to reduce the leak in subsidies that involves high costs and which should actually be enjoyed by the lower-income group in the country,” he told the official Bernama news agency.

The ban affects up to 300 petrol stations, and extends up to 50 kilometres from the border in the northern states of Perlis, Kedah, Perak and Kelantan; and Johor in the south which faces Singapore.

The move comes as the government conducts a controversial review of its fuel subsidies, expected to cost 43 billion ringgit (13.6 billion US dollars) this year if oil prices hover around 120 US dollars per barrel.

While the Kuala Lumpur-led rule is still stuck in the pipeline and undergoing constant refinement, it is clear that the topic is being closely watched and debated by concerned publics in Malaysia, Singapore and Thailand.

On the popular Singapore Bikes Internet Forum, it has been noted that the fuel ban is drawing more attention and interest than even the escape of alleged terrorist and Internal Security detainee Mas Selemat Kastari from Whitley Detention Centre. Dubbed “Toilet Break” by netizens, Mas Selemat’s escape from a high-security facility in “safe” Singapore caused more than some embarrassment recently and sparked calls for Deputy Prime Minister Wong Kan Seng, who also heads the Ministry of Home Affairs, to step down.

And it comes as no surprise. After all, money – or the lack of it – is a greater source of worry for the average Singaporean amid soaring prices.

New Straits Times: Call to reconsider ban on sale of petrol to foreigners

Any decision to ban the sale of petrol to foreign registered cars in border states should not be done too hastily, said Johor’s former tourism executive councillor Datuk Jimmy Low.

He likened the decision by the Domestic Trade and Consumer Affairs Ministry to bar petrol stations from selling diesel and petrol to foreign registered vehicles as “killing the goose which lays the golden eggs”, especially in the Johor context.

Low, who held the tourism portfolio from the mid 80s to the early 90s, said that banning sales was not the solution to solve the subsidy problem. “We all know that Johor Baharu is a popular destination for Singaporeans and furthermore, there is the 3/4 tank ruling imposed on Singapore cars if they want to leave the Republic. “During my time we made a survey and found that at least 20,000 to 30,000 Singaporeans are day trippers, which means they come in their cars, do their shopping and eating and then drive home. “And each Singaporean spent an average of RM200. That’s a lot of money for the economy of Johor Baharu. So what if they pump half a tank of Malaysian petrol,” Low told Bernama.

But readers of ThrottleZine can rejoice: Motorcyclists will not be affected by the ban!

According to Malaysia’s Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad, the government has decided to exempt foreign motorcyclists from the petrol ban in a bid to favour the “small man”.

TODAY: Petrol rule reprieve

SINGAPOREAN drivers seeking to buy petrol across the Causeway in Johor Baru will be spared from Malaysia’s new ban on the sale of petrol to foreigners - for one week.

This is because the Malaysian government wants to monitor the effectiveness of the ban, which starts on Monday in the northern Malaysian states, before implementing it in Johor Baru on June 9.

But for another group — foreign motorcyclists :— there is no cause for worry because the ban doesn’t apply to them, Malaysia’s Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad told Today in an exclusive telephone interview yesterday.

Mr Shahrir said he would make the announcement at a press conference on Monday.

When asked why the government has decided to exempt foreign motorcyclists from the petrol ban, he replied: “It is because we are in favour of the small man. And this includes the small man in our neighbouring countries as well.”

Mr Shahrir added: “Besides, even if they use petrol, they don’t use big quantities.”

It is indeed heart-warming to hear that officials are actually caring about the less well-off in society. And we can scarcely believe the great news. But a quick check of petrol stations around the border in Johor reveals pump operators have indeed been instructed to allow foreign registered motorcycles to carry on as normal.

However, it must be noted that the ruling is in constant refinement. Sources reveal that a one-week allowance has been put in place for Singapore-registered vehicles filling up in Johor Baru, and the full ban will be effective starting June 9.

Honestly, nobody knows exactly what to expect next. (So remember to check back here for updates!)

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