When did S'poreans first start flocking to Johor for cheaper gas?: Mothership Looks Back

S'poreans 30-year love affair with Johor petrol stations.

Nyi Nyi Thet | April 10, 2022, 10:11 AM

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In 1985, Madam Chen, a housewife from Singapore made a trip down to Johor.

She was on a -- and I am quoting from media reports at the time -- "shopping-cum-petrol refill trip".

While on the trip, she was confronted by four men armed with pistols who robbed her of hundreds of dollars.

She wasn't the only one. There was a stark increase in media reports on Singaporeans getting robbed in Johor in 1985.

And that was mainly due to the very substantial increase in the number of Singaporeans heading over to Johor for cheaper petrol.

It might not be too much of a stretch to point to 1985 as the year a Johor petrol jaunt became ingrained into Singapore culture. But more on that later.

It might be useful to see when exactly the idea of Johor as a petrol haven began to take root for Singaporeans.

The Ringgit and the dollar

In March 1981, there was some concern about the weakening Ringgit compared to the Singapore dollar.

Malaysia's Bank Negara came out to reassure people that the Ringgit was still strong despite the slip-up.

The rate then was RM1.0993 for S$1.

It sounds almost comically negligible now, but take note that the rate had been RM1 to S$1 as recently as September 1980.

A month later that figure was at RM1.108 for S$1.

In 1988, the rate was around RM1.34 for S$1.

Might not sound like much, but trips to pump petrol in Johor became increasingly common somewhere between these points in time.

On a petrol

The mass trek/drive to Johor didn't begin straight away in 1981 though.

Sure the petrol was cheaper, but it didn't appear to have been "bring a car jack over to Malaysia petrol stations" cheaper for too many people.

A litre of premium petrol in Singapore in 1983 would set you back S$1.256. The same amount of premium gas in Malaysia would have cost S$1.05.

Filling up a full 40-litre tank of premium petrol would therefore have saved you about eight dollars.

Eight dollars could get you a rather limited buffet. Or two rather limited buffets if you were a child.

Image from Newspaper.sg

But make no mistake, there were definitely causeway petrol crossers even then.

In fact, there were concerns that Malaysian petrol would come to Singapore cars instead.

A Business Times article in 1983 highlighted the possibility of Malaysian dealers selling petrol illegally in Singapore.

The fear was that dealers, operators and transporters would work together to flood the Singapore market with cheap petrol from Malaysia.

There was, however, no need to fear rogue Malaysian tankers with inexpensive petrol, though, as Singaporeans armed with nothing but a dream would accomplish pretty much the same thing in two years.

1985

The year is 1985, the Reagan era had begun, Singapore would experience their first-ever post-independence recession and a small shophouse supermarket called Sheng Shiong would be set up in Ang Mo Kio.

The ringgit was hurting, even with a rather weak Singapore dollar that year.

Image from Singapore Monitor

The gas prices were also beginning to really see some light of day.

Premium petrol in Singapore was now S$1.51 a litre, while Johor was serving them out at S$1.06.

That's S$18 saved for a 40-litre tank of petrol. More than two times the savings from back in 1983.

You could use that to get a cut and perm at a hip unisex salon by pro stylists like Gregory/ Bobby/ Jun/ Pauline or Yvonne.

Screenshot from ST Classifieds 1985

S$3 million in a month

There was also a tax increase for petrol in Singapore, which was seen as one of the reasons for the increased trips to Johor.

Singaporeans sprang into action.

29,000 cars crossed the causeway in March 1985, nearly 10,000 more than the same period the year before.

Of course, it wasn't just a petrol trip for many, but rather more of a day trip to a nearby area with very favourable exchange rates.

As one person ST spoke to at a Johor pump said:

"It has nothing to do with the price of the petrol. It is because of the exchange rate."

Petrol dealers in Singapore estimated their losses to Johor petrol stations at around S$3 million. In just one month.

It got to the point where even the government had to weigh in.

When asked if levies would be imposed to "discourage" motorists from going over to Johor to pump petrol, then-Finance Minister Richard Hu said they were monitoring the situation.

Monitoring to see if this would be "a temporary or a permanent trend".

Platform Half and Three Quarters

It wasn't temporary.

And in 1989, the half-tank rule would be implemented.

The bill was passed in parliament after a spirited debate involving two Ministers and 13 MPs.

Want to go to Johor by car? Gotta make sure it at least has half a tank of petrol.

The logic was simple enough to follow. Less tank space means less Johor petrol for Singaporeans.

Motorists faced a fine of up to S$500 under the new law.

Those who tamper with their petrol gauge would be subject to a much heftier fine of up to S$5,000.

The measure was considered "satisfactory" a year on but ultimately couldn't remain as effective for one very simple reason.

"It has nothing to do with the price of the petrol. It is because of the exchange rate."

A 1989 ST article noted that even with higher Johor petrol prices in 1989, the cheaper Malaysian ringgit "makes the trip worthwhile". The exchange rate then was S$1 to RM1.39.

In 1991, the three-quarter tank rule came into effect.

Image from Roads.sg

Hu explained the reason for the rise in Parliament.

"The availability of substantially cheaper petrol in Johor from February will undermine the conversion to use of unleaded petrol in Singapore and make petrol taxes less effective in restraining car usage and also cause significant loss of revenue.

For these reasons, once the Amendment Bill is passed, we will require Singapore registered vehicles leaving Singapore by road to carry a minimum of three-quarter tank of fuel instead of the present half a tank."

Obstacles

But like any love story, it isn't the obstacles that define the romance, it is the overcoming of those obstacles.

When faced with no other restrictions but the size of their petrol tanks, Singaporeans went above and beyond.

Screenshot from Newspaper.sg

Petrol in cans is dutiable, reminded officials.

Regardless, the love affair continued, with record numbers of vehicles crossing the causeway.

This was, of course, then met with the half-tank measures.

On the first day of the new rules, nearly 60 motorists were turned back for having too little petrol in their tanks.

Undaunted, the motorists took to filling up just the right amount at petrol stations in Woodlands presumably so they could fill the maximum amount over in Johor.

The demand for last-minute mini-fillups in Woodlands was so great that petrol stations in the vicinity of Woodlands had to extend their operating hours.

The petrol bonanza was sometimes a two-way street as well. There were reports of Malaysian cars coming into Singapore with tanks bursting with petrol, and siphoning the fuel from their cars to grateful Singaporean relatives or friends.

The fuel limit would then be tightened by another quarter.

The gauge-tampering caper

Still, Singaporeans had no intention of letting go of their one true love.

On March 10, ST reported on how a 38-year-old man driving a Mercedes-Benz was stopped on his way to Johor.

Strange, considering the man's fuel gauge was completely full.

Unperturbed, the customs officer cooly reached below the man's dashboard and pressed a switch.

Miraculously, the gauge was now no longer full, in fact, it was less than half full.

The man admitted tampering with his gauge and was arrested. But how did the officer know of the switch? Telepathy? Or some petrol-based sixth sense?

Nope, just experience.

See, just two days ago another Mercedes-Benz driver had pulled up using the exact same trick.

That attempt had been foiled as well.

An officer presumably pressed a switch, perhaps located in a slightly different area, and the great gauge caper was exposed.

But how did the officer from two days ago know?

See, about two weeks ago yet another Mercedes-Benz driver had tried the exact same thing, which was basically a "simple rewiring trick" according to ST.

The three Mercedes-Benz drivers were the first three to be caught with such devices.

This is of course not an indictment on Mercedes-Benz drivers, media reports over the years on cars that had purposely flouted the 3/4 rule cover a gamut of brands.

In fact, four months later, three drivers would be arrested in a comparably short amount of time for using what appears to be the same switch method. The cars involved were a Nissan, a Toyota, and a Honda.

The cheaper fuel in Johor is almost like a siren call for Singaporeans, petrol kiosks perched on rocky coasts going glug glug glug at helpless motorists.

More than 20 years after the three-quarter tank rule was imposed, nearly 60 vehicles were turned back for not meeting that threshold.

They can't resist it.

In fact, remember Madam Chen?

The Singaporean housewife that got robbed in Johor during a shopping-cum-petrol refill trip.

Chen was shaken, as you would when you are faced with profound danger.

So she took a deep breath and then went right back to Johor the next week with her husband for cheap petrol, where they were then robbed of another S$100.

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Image from Roads.sg