KPDN Can Suspend Petrol Station Licence Over RM270,000 Subsidy Misuse
A Sungai Buaya petrol station used manual bypass tricks on over 1,000 transactions to misappropriate BUDI MADANI RON95 subsidy worth more than RM270,000.
What happened1/5 MoF blocked the station; KPDN can suspend its licence
The Ministry of Finance (MoF) blocked a petrol station in Sungai Buaya, Nibong Tebal from selling subsidised RON95 and diesel under BUDI MADANI after detecting suspicious transactions.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said KPDN can suspend or cancel the station's CSA licence under the Control of Supplies Act 1961 if the owner is found guilty of breaching licensing conditions.
The Royal Malaysia Police (PDRM) is conducting the investigation, with KPDN involved. The minister spoke at a news conference announcing the 2026 Deepavali Festive Season Maximum Price Scheme (SHMMP).
The real numbers2/5 Over 1,000 fake transactions drained RM270,000 in subsidy
1,000+manual bypass transactions detected100,000+ litresof subsidised petrol misappropriatedRM270,000+government subsidy value at riskMoF's review of the station's transaction records revealed over 1,000 transactions using manual bypass methods, involving more than 100,000 litres of petrol.
The government subsidy value at stake exceeds RM270,000 from a single station.
- 01/02
1,000+ manual bypass transactions detected Over 1,000 fake transactions drained RM270,000 in subsidy manual bypass transactions detected
Why it matters3/5 How BUDI95 works and what the station allegedly did
Under BUDI MADANI RON95 (BUDI95), 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.
The MoF review found the station used manual bypass methods on its transaction records to push through over 1,000 BUDI MADANI claims using manual bypass methods on its transaction records.
Armizan said the government will not compromise on misappropriation because the BUDI MADANI programme involves a large financial commitment to assist the public. Check MOF for the current monthly litre quota before quoting a figure.
Why it matters4/5 A petrol station needs two licences, not one
To operate legally, a petrol station owner needs a licence under the Petroleum Development Act 1974 (PDA) and a separate CSA licence for scheduled controlled goods under the Control of Supplies Act 1961.
The CSA licence is the one KPDN can suspend or cancel. That means the station could lose the right to sell controlled goods like subsidised fuel even if its PDA licence remains valid.
- 02/02
of subsidised petrol misappropriated 100,000+ litres Over 1,000 fake transactions drained RM270,000 in subsidy of subsidised petrol misappropriated
Worth knowing5/5 The investigation is still open
PDRM and KPDN are still investigating. No charges or final penalties have been announced. The minister's statement outlined the range of actions available, not a decision already made.
Questions people ask
What is a CSA licence and who issues it?
A CSA licence is required under the Control of Supplies Act 1961 to sell scheduled controlled goods, including subsidised petrol. KPDN can suspend or cancel it if licensing conditions are breached.
Can I still buy RON95 at RM1.99 under BUDI95?
Yes. Eligible Malaysian citizens can still buy RON95 at RM1.99 per litre within the monthly quota set by MOF. The Nibong Tebal case does not change the scheme for other buyers. Check MOF for your current quota.
What happens to the station owner if found guilty?
Under the Control of Supplies Act 1961, KPDN can suspend or cancel the CSA licence. PDRM is also investigating, so criminal charges may follow separately. No final decision has been announced yet.
