on Jul 26th, 2010Singapore Vehicles Not Allowed to Pump Ron 95 in Malaysia

The news is, Singapore and other foreign vehicles will not be able to pump ron95 petrol in Malaysia starting August 1st 2010. Ron97 and V-power will not be subsidized, or subsidy will be reduced.
From what I read online,  since ron 97 isn’t subsidized by the government anymore, there is no restriction to go in JB with empty tank starting from August 1. Also, the ron 97 prices will be going up further, perhaps adjusting the prices nearer to Singapore to be higher than that of petrol stations further from the border? These are all just speculation for now… we just have to wait till 1st August to clarify what’s the new ruling about.
If Singapore cars can really go into JB with an empty tank to pump ron 97 petrol at below RM2.50 per litre, then indeed this is a good news for Singaporeans. Singaporeans can stop worrying about random checks of their petrol tanks, drive into JB for a full tank and have a nice cheap meal before coming back to Singapore. In put it into perspective for non-Singaporeans, Singapore petrol fluctuates around S$1.60 to S$1.80 for 95 petrol, which is about twice the price of Malaysian fuel.
1. Starting 1 Aug 2010, Singapore Registered vehicles will not be able to pump petrol with RON95 grade at all within Malaysia. Enforcement officers will be in patrol around border towns, especially in Johor Bahru.
2. Starting effectively, there will be an increase in fuel price for both RON95 and RON97 petrol as such:
i. RON95 petrol, while still being subsidized by Malaysian government, will be priced at RM$1.85/litre and will be only available to Malaysian Registered vehicles.
ii. RON97 petrol will no longer be subsidized by Malaysian government, and the price is subjected to market forces. As of last night, the price for RON97 is RM$2.10 in Johor Bahru, against a price of RM$2.05 just last week.
3. Thus for RON 97 petrol, there is no longer any restriction in the amount of petrol that can be topped up by Singapore Registered vehicles.
In the long run, the price of RON97 will probably increase further, especially in towns like Johor Bahru due to the high petrol demand from Singapore vehicles.
Not that it is much to complain for now. The current price of RM$2.10/litre of RON97 is still a good 50.0% discount from Singapore prices.
It doesn’t say where he got his sources from though :)

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5 Responses to “Singapore Vehicles Not Allowed to Pump Ron 95 in Malaysia”

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