A petrol station owner in Malaysia is accused of selling 250 litres of diesel to a Singapore-registered bus on two separate occasions in May 2023.

The 38-year-old woman, Soraya Md Tamyes, was charged on Jan. 29, 2024 with selling diesel worth a total of RM1,175 (S$333).

If convicted, Soraya can be fined up to RM1 million (S$283,100), jailed up to three years, or both.

Sold over the 20-litre limit to a foreign-registered bus

Transactions involving controlled goods such as diesel require a licence issued by Malaysia's Controller of Supplies.

In the case of diesel, individuals or organisations that want to purchase more than the 20-litre limit using fuel drums or other containers are required to obtain a special permit issued by the Ministry of Domestic Trade and Costs of Living.

They can apply for a free permit online.

Additionally, licensed petrol stations are not allowed to sell more than 20 litres of diesel to a foreign-registered bus.

Soraya allegedly committed the offences at a petrol station in Kempas Baru on May 19 and 30, 2023, both involving the same Singapore-registered bus.

She pleaded not guilty to the charges, New Straits Times reported.

She is set to return to court on Feb. 28.

Malaysia's hefty subsidy bill

Diesel and RON95 petrol are among the items that are heavily subsidised by the Malaysian government.

However, the country's subsidy bill has been ballooning, and is expected to increase from RM55.4 billion (S$15.7 billion) in 2022 to over RM81 billion (S$23.2 billion) in 2023.

The government is hoping to bring down the subsidy bill by clamping down on the sale of subsidised fuel to foreign-registered vehicles.

This includes proposing harsher penalties for petrol station operators selling subsidised fuel to foreign-registered vehicles and potentially penalising individuals who purchase subsidised fuel, The Star reported.

Additionally, Malaysia is looking to end its blanket subsidy for the subsidised RON95 petrol by the second half of 2024, The Business Times reported.

Instead, the country will adopt a more targeted approach, where only the most needy will enjoy the subsidies.

However, details about the targeted subsidy for RON95 petrol have not firmed up, Malay Mail reported.

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