Unsubsidised fuel now on sale in Perlis – RON95 at RM3.22/litre, diesel RM3.45/litre for foreign vehicles

Unsubsidised fuel is now on sale in Perlis, for the benefit of foreign-registered vehicles. Available at two specialised stations in Padang Besar and Wang Kelian, the non-subsidised RON95 petrol is priced at RM3.22 per litre, while diesel goes for RM3.45 per litre.

These are significantly more expensive compared to the current subsidised prices of RM2.05 per litre for RON95 and RM2.15 per litre for diesel that are applicable to Malaysian-registered vehicles. The differences are RM1.17 (57%) and RM1.30 (60%) per litre respectively, which certainly do add up over a full tank.

Launched by domestic trade and cost of living (KPDN) minister Datuk Seri Salahuddin Ayub, the pilot project in Perlis is set to run for three months until April, before being expanded to other border states including Kedah, Perak, Kelantan, Johor, Sabah and Sarawak.

Foreign-registered vehicles (both Singaporean and Thai) caught using subsidised fuel have repeatedly gone viral over the past few months. By law, cars bearing non-Malaysian registrations are only allowed to use RON97 (which is unsubsidised) in the country, and not RON95. Logic sees that the significant government fuel subsidies should only benefit the locals, not tourists.

It’s a different story for diesel vehicles, however, as there is no unsubsidised option available – both Euro 5 B10 and B7 options are subsidised. Instead, foreign-registered vehicles are permitted to buy no more than 20 litres of diesel per day at Malaysian petrol stations within 25 km of the borders to curb subsidy leakage to fuel smugglers.

As of February 1, 2023, there is a new rule that dictates no foreign-registered vehicles can purchase diesel at regular fuel station in Perlis – they now have to head to the two unsubsidised fuel stations in Padang Besar and Wang Kelian.

It has to be said that even at the newly revealed unsubsidised prices, both RON95 and diesel are still cheaper here in Malaysia compared to our neighbouring countries. In Thailand for instance, RON95 goes for RM4.67/litre and diesel at RM4.43/litre. Over in Singapore, RON95 is priced at an average of RM9.08/litre, while diesel costs RM8.65/litre. Meanwhile, RON92 petrol is around RM3.71/litre and diesel RM4.69/litre over in Indonesia.