Malaysia threatens to revoke petrol station licenses over subsidy fraud

The Ministry of Domestic Trade and Cost of Living (KPDN) has warned that petrol station owners in Nibong Tebal, Penang, face the suspension or revocation of their Controlled Schedule Article (CSA) licenses if found guilty of manipulating the Budi Madani subsidy program.

Investigations are currently being conducted by the Royal Malaysia Police (PDRM) and KPDN following reports of suspicious transactions. The Ministry of Finance previously restricted a station in Sungai Buaya from selling subsidized RON95 petrol and diesel after detecting over 1,000 manual bypass transactions. These activities allegedly involved more than 100,000 liters of petrol, with government subsidy values exceeding RM270,000.

The crackdown follows complaints from Budi Madani recipients who discovered their MyKad information was being used without authorization to purchase subsidized fuel. Minister Datuk Armizan Mohd Ali emphasized that the government will not compromise on subsidy misappropriation due to its significant financial implications.