Cost of living

Caltex and Petron start RON95 damage compensation for car owners

Caltex and Petron have begun paying goodwill compensation to car owners hit by RON95 engine damage, confirmed by KPDN Minister Armizan in the Dewan Rakyat.

Ringgit2U · 5 Nov 2026 · 3 min read

petrol station fuel pump nozzle at a Malaysian forecourt

What happened1/5
Caltex and Petron begin RON95 damage payouts
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed in the Dewan Rakyat on 5 November that Caltex and Petron have started paying goodwill compensation to car owners whose engines were damaged after filling RON95.
KPDN first received complaints on 3 October 2026. Enforcement officers visited the petrol stations involved and pulled fuel samples for lab testing.
Armizan was responding to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) about lab findings, consumer confidence and compensation for affected motorists.
The real numbers2/5
262 samples pulled from 8 brands across 8 states
262RON95 samples collected by KPDN
43 testedwater below 0.05% detection limit
8 brands, 8 statesscope of the sampling
By 31 October, KPDN had collected 262 RON95 samples from eight petrol station brands in eight states, plus three oil company depots. Of those, 259 came from forecourts and three from depots.
The Chemistry Department's initial report, dated 29 October, covered 43 samples. All 43 showed water content below 0.05%, the minimum reportable detection limit. The remaining samples are still being analysed for other foreign substances.
1. 01/02
  262RON95 samples collected by KPDN
  262 samples pulled from 8 brands across 8 states
  RON95 samples collected by KPDN
Why it matters3/5
What we know and do not know about the payout
The term goodwill compensation is used by the companies and the Minister. The exact legal basis and conditions of the payout have not been detailed in the statements available.
The initial Chemistry Department tests only looked for water contamination. Minister Armizan said a more comprehensive analysis is needed to identify other foreign substances that could be in the petrol. The exact cause of the engine damage has not been confirmed.
If you need clarity on your legal options, contact KPDN's consumer complaint channel or a legal aid body.
How it affects your wallet4/5
BUDI95 is still live at RM1.99 per litre
Under BUDI95 (BUDI MADANI RON95), eligible Malaysian citizens buy RON95 at the subsidised price of RM1.99 per litre within a monthly quota. Non-eligible buyers pay the unsubsidised market price, which changes weekly. Check MOF for the current monthly quota figure.
e.g. filling a 50-litre tank at RM1.99 costs RM99.50 under BUDI95. If you filled RON95 at any of the eight brands KPDN sampled between early October and now, keep your petrol slips. They are the first piece of evidence for any claim.
The per-vehicle compensation amount has not been stated in the Minister's Dewan Rakyat remarks. Check with Caltex or Petron customer service for the current terms. Before agreeing to any payout, get the written terms and compare them against your workshop invoice. If the terms are unclear, seek advice before signing.
1. 02/02
  262 samples pulled from 8 brands across 8 states
  water below 0.05% detection limit43 tested
  water below 0.05% detection limit
What to do, step by step5/5
If your car was affected, do this today
1. Gather your receipts: petrol slip showing the station, date and litres filled; the workshop invoice for engine repairs; and photos of the damage.
2. Contact Caltex or Petron customer service to register your claim. Ask for the written compensation terms before you agree to anything.
3. If the offer does not cover your repair cost, lodge a consumer complaint with KPDN's e-Aduan portal and keep your documentation. For legal options, consult a lawyer or a legal aid body.
4. Keep all communication in writing (email or registered post) so you have a paper trail. Note the station name, branch address and date of each fill-up.

Questions people ask

Is the RON95 fuel safe to buy right now?

Preliminary tests on 43 samples found water below 0.05%, the minimum reportable detection limit. The remaining samples are still being tested for other foreign substances. The investigation is ongoing and the cause of the engine damage has not been confirmed.

Does the compensation cover my full engine repair bill?

The per-vehicle compensation amount has not been stated in the Minister's Dewan Rakyat remarks. Check with Caltex or Petron customer service for the current terms. Get the written terms before you agree to anything, and compare them against your workshop invoice.

I bought RON95 under BUDI95. Does that change my claim?

BUDI95 sets the subsidised price at RM1.99 per litre for eligible citizens within a monthly quota. It does not change your right to seek compensation for engine damage. Direct your claim to the petrol company involved.

Source: Ministry of Finance Paul Tan The Malaysian Reserve

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