The Malaysian government has barred a petrol station in Sungai Buaya, Nibong Tebal, Penang, from selling Government blocks Nibong Tebal petrol station from selling subsidised RON95 and diesel over suspected subsidy abuse programme following the discovery of suspicious transactions allegedly involving the misuse of government fuel subsidies.
According to the Ministry of Finance (MOF), the action was taken after several BUDI MADANI recipients lodged complaints that their MyKad information had been used without their knowledge to purchase subsidised petrol. The complaints prompted authorities to examine transaction records at the petrol station, uncovering irregularities that raised concerns over potential subsidy abuse.
Investigations revealed that more than 1,000 transactions were processed through a manual bypass method, involving over 100,000 litres of petrol and government subsidies valued at more than RM270,000. Following the findings, the ministry suspended subsidised fuel sales at the premises and withheld subsidy payments exceeding RM270,000, subject to further adjustments.
In addition, nine individuals, including the petrol station owner and family members, have been temporarily barred from accessing BUDI MADANI subsidy facilities while further action is being taken. Authorities have also identified several other individuals suspected of having connections to the case and are reviewing their transaction records to determine whether additional irregularities occurred.
The Ministry of Finance stressed that the government would not tolerate any misuse of fuel subsidies, warning that strict action would be taken against petrol stations or individuals found violating BUDI MADANI regulations. It added that continuous monitoring would be strengthened to ensure subsidised fuel reaches eligible Malaysians, particularly as ongoing tensions in the Middle East continue to affect global energy supplies and fuel prices.
