RON95 Foreign Card Ban to be Phased in Nationwide Starting April 1

To plug existing loopholes regarding the abuse of subsidized fuel by foreign-registered vehicles, the Ministry of Domestic Trade and Cost of Living (KPDN) has officially enforced a new regulatory framework. Effective April 1, 2026, petrol stations nationwide will begin a phased implementation of revised guidelines: The use of foreign credit and debit cards at Outdoor Payment Terminals (OPT) for RON95 purchases is strictly prohibited.

Why KPDN is Targeting Foreign Payment Cards

Datuk Azman Adam, KPDN Director-General of Enforcement, highlighted that foreign-registered vehicles — particularly those from neighboring countries — have frequently exploited the convenience of automated, self-service pumps to illicitly purchase subsidized RON95 using foreign credit and debit cards. With high-volume petrol stations often operating more than 15 pumps simultaneously, maintaining effective real-time monitoring of every vehicle remains a significant logistical challenge for station personnel.

By integrating this blockade at the system level, the ministry seeks to sever unauthorized transactions directly at the source.

Will Consumers Be Affected?

Malaysian Citizens: For local motorists, the refueling process remains entirely seamless. As long as transactions are made using cards issued by local financial institutions or recognized local e-wallets, the fueling experience remains unaffected and unchanged.

Foreign Cardholders: Those with a legitimate need to refuel (under specific, eligible circumstances) must now complete their transactions at the station counter. This mandatory shift allows for manual verification by station personnel or enforcement officers.

Tightening Diesel Controls in East Malaysia 

Beyond the RON95 crackdown, the government is intensifying its oversight in Sabah, Sarawak, and Labuan. Petrol station operators across East Malaysia have been mandated to enforce tiered diesel purchase limits based on vehicle classifications. Under the new directive, transaction caps are set at 50, 100, and 150 litres. This measure is designed to to sever the supply chain for cross-border smuggling operations, ensuring that national subsidies benefit only legitimate domestic users.

Enforcement & Oversight

While several oil companies have already integrated the necessary system updates, others will progressively synchronize their payment infrastructures starting in April. To ensure compliance, KPDN has mobilized 2,400 enforcement officers nationwide under the "Ops TIRIS 4.0" framework, specifically tasked with identifying and penalizing the illicit diversion of subsidized fuel.

This policy serves as a decisive strike against the persistent exploitation of Malaysian fuel subsidies. While the new verification process may introduce a minor logistical hurdle for genuine foreign visitors, it is a necessary safeguard to ensure that national wealth benefits its rightful citizens. Do you support this move to protect the nation's coffers? Let us know your thoughts in the comments below!

(Image generated by AI)