No fuel for foreign motorists within 50km of Malaysian borders


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Lmodel

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Jun 19, 2005
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#1
Prime News
No fuel for foreign motorists within 50km of Malaysian borders
Carolyn Hong, Malaysia Bureau Chief
27 May 2008
Straits Times
English
(c) 2008 Singapore Press Holdings Limited

KL moves to limit sales of subsidised fuel to non-citizens

KUALA LUMPUR - FOREIGN-REGISTERED vehicles from Singapore and Thailand will not be allowed to buy petrol or diesel at stations within 50km of Malaysian borders, from as early as this Friday.

The new ruling is intended to prevent foreign vehicles from entering Malaysia to buy the heavily-subsidised fuel.

Domestic Trade and Consumer Affairs Minister Shahrir Samad told The Straits Times that there would be no restriction on purchase of fuel from stations outside the designated zone.

'This will come into force on Friday, or at the latest (next) Monday,' he said.

He said the problem is mainly caused by Thai-registered vehicles that come into Malaysia just to top up fuel, but the government has decided to extend it to Singapore-registered ones as well.

He does not have data on the number of vehicles or amount of fuel sold to these vehicles, but the leakage was a 'serious problem'.

Written directives will be issued to 300 petrol kiosks in the designated zone not to let foreign vehicles fill up, he said.

The penalty for station owners who flout the rule is a fine of up to RM250,000 (S$108,000) or a jail term of three years.

Malaysia subsidises its fuel heavily, to the tune of RM40 billion last year.

The government is moving cautiously to roll back subsidies for fear of political repercussions as the cost of living soars. The move against foreign vehicles is a way to cut its subsidy bill without affecting Malaysians.

Mr Shahrir said this was an interim measure while the government looked into ways to reform its subsidy mechanism.

He said the move was 'not targeted at tourists or those who are genuinely visiting Malaysia. If they drive from Singapore to Penang, they can buy fuel at any station outside the 50km radius from the border,' he said.

The move would affect Singaporeans like Mr Edwin Ngin Kuan Wee, who drives twice a week from his home in Telok Blangah to Johor Baru during weekdays, just to top up the tank.

Even with the three-quarter-tank rule imposed by the Republic on Singapore cars, he manages to save on each trip in his Toyota Celica.

He fills up a quarter of the tank, about 26 litres, each time in JB at RM1.92 a litre, or a total of $21.10.

In Singapore, the same amount would cost him $54.60 at $2.10 a litre, saving him $33.50.

'I am not sure it will be worthwhile for me to drive 50km into Johor for petrol,' said the 26-year-old sales engineer.

Said transport executive Faisal Hassan, 28, who drives to JB weekly for shopping and dining: 'I would not want to travel 50km away from the border for safety reasons and there are no prominent shopping centres I know of.'

A drive of 50km from the Causeway would roughly take you near Desaru or Kota Tinggi, or if you are travelling on the North-South Expressway, near Sedenak, he said.
 

Simon_84

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Mar 18, 2004
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bukit batok
#2
looks like business in JB is going to take some beatings due to lesser sg customers....think my friends wont be going in so often already during the weekends.
 

xtemujin

Senior Member
Apr 1, 2005
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Singapura, Singapore
#3
Both sides is going to suffer.

We thank the Malaysian government for subsidising the fuel for Singapore drivers when in Malaysia.

Looks like we're going to see another price hike for petrol here in Singapore.

looks like business in JB is going to take some beatings due to lesser sg customers....think my friends wont be going in so often already during the weekends.
 

Nisa

Senior Member
Aug 13, 2004
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#4
Actually i am curious, what is the rate of Singapore's Petroluem Tax? Anyone knows?

And is there a site I can go to to find out what are the norm for petroluem taxes world wide?
 

#5
Be prepared for fuel price to hit S$3 per liter for RON 95.

This is inevitable. It is already US$130++ per barrel and soon this will pass down to the drivers.

Government will not reduce GST and fuel taxes on fuel. It is time to use the car with careful planning. Maintain the car properly and keep tyres inflated. CNG is till not viable due to too few stations in this island.
 

mohgui

Senior Member
Jan 31, 2005
1,294
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La La Land
#6
there goes cheap fuel. i think sporeans going into msia to pump fuel is not as bad as those thais. at least there's a control from the spore side. must have at least 3/4 tank full before going in.

i think the thais do not impose such rule. means to say i can drive an almost empty tank and get cheap fuel from my neighbour.

damn... :angry:
 

SilverPine

Senior Member
Jul 8, 2007
4,539
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Singapore
#7
From the radio interview to one of the petrol station owner at J.B. close to custom, he mention that 80% of his customer is Singaporean, his overhead is high, and he would have problem to force the new rule when he is not around. Just one fine will make him out of business. Other business in J.B. will suffer, less tax will be paid by the business.

I was told that the toll money that collected at the J.B. custom go direct to K.L. Singapore car have to pay RM2.90 per entry, if less Sigapore car enter to J.B., then K.L. have to kiss good bye to the money.

No body win.
 

ST1100

Senior Member
Jun 18, 2003
1,785
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Singapore, Bedok
#8
If enforced, those petrol stations on the 2nd link headed towards Singapore might as well close down next week. Their business is almost 100% Singapore vehicles returning home.
 

rvxing

New Member
Nov 7, 2004
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Somewhere in little red dot
#10
They might have to start some special petrol stations that will sell to foreign cars at non subsidised price = their current petrol price + the subsidised amount. This amount will still be cheaper than Singapore petrol price. Then Singaporean will still turn up in JB for petrol and other shopping and the shop keepers will be happy again.
 

#11
The move would affect Singaporeans like Mr Edwin Ngin Kuan Wee, who drives twice a week from his home in Telok Blangah to Johor Baru during weekdays, just to top up the tank.

Even with the three-quarter-tank rule imposed by the Republic on Singapore cars, he manages to save on each trip in his Toyota Celica.

He fills up a quarter of the tank, about 26 litres, each time in JB at RM1.92 a litre, or a total of $21.10.

In Singapore, the same amount would cost him $54.60 at $2.10 a litre, saving him $33.50.

'I am not sure it will be worthwhile for me to drive 50km into Johor for petrol,' said the 26-year-old sales engineer.
It never was worthwhile, Mr Edwin Ngin. You got way too much time on your hands to drive to JB twice a week to top up 1/4 of your tank.
 

GavinTing

New Member
Oct 16, 2007
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#12
It never was worthwhile, Mr Edwin Ngin. You got way too much time on your hands to drive to JB twice a week to top up 1/4 of your tank.
This guy too much time. Just take the train or bus next time =.="
 

SilverPine

Senior Member
Jul 8, 2007
4,539
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Singapore
#13
Tonight I was at the Woodland Causeway, in the middle of the Causeway some lorry driver dump one truck load of stone in the middle of the road. I think it must be a very unhappy driver toward the new fuel rule.

With the new fuel rule, I think there will be a demand for black market petrol for Singapore cars.
 

Jun 24, 2004
352
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16
#14
Objectively I hope, probably that's one of the best way to stop Singaporean from taking advantage of other country's benefit to their people in terms of fuel.
 

werbium

New Member
Apr 9, 2008
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#15
It looks like the move not to sell petrol to foreigners within a 50km radius from the border will be felt more by the Thais as many drove in with maxi - cab pickups with near empty tanks. Singaporeans will not feel that much as it is limited by the 3/4 tank rule b4 leaving the city state.

This ruling should not be applicable to East Malaysia as the neighbours (Brunei and Indonesia) there has even cheaper petrols.
 

aeskywan

New Member
Feb 13, 2007
104
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#16
On a more serious note... if you are new to the highway and you lose your way enroute back to Singapore.. run out of fuel and end up in the 50 km border zone..... call for tow truck??
 

SilverPine

Senior Member
Jul 8, 2007
4,539
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Singapore
#17
Objectively I hope, probably that's one of the best way to stop Singaporean from taking advantage of other country's benefit to their people in terms of fuel.
Now is the school holidy, you can see more Singapore cars jam the road before Malaysia custom toward Singapore direction, very few Singapore cars fill up petrol at the petrol station, not every Singaporean taking advantage.
 

roDz

Senior Member
Feb 6, 2006
647
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16
On A Little Red Dot
#18
I think s'pore registered cars can still pump petrol in jb,juz that we will have to pay the govt subsidy also...its about rm1.92+ abt rm1.1(subsidy)...
 

#20
I think it will be smarter to increase charges for foreign drivers instead of having the 50km rule.
Anyway, that's what I'll do if I were them.
ya lor...

my dad saves $25 everytime he pumps his 1/4 tank. that is less entry fee etc. which is alot..

news already report the some stations depend majorly on foreigners, w/out them wonder how they survive? low demand price go up..malaysian govt must subsidise more..

plus someone mention KL lesser earnings from gantry fees..
we pay more they also pay more. WHY PAY MORE!
 

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