Petrol station in Penang risks losing licence over subsidy misuse

KUALA LUMPUR – The Ministry of Domestic Trade and Cost of Living (KPDN) may suspend or revoke a petrol station’s Control of Supplies Act (CSA) licence in Nibong Tebal, Penang, if it is found to have misused the BUDI MADANI fuel subsidy.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said action could be taken under the Control of Supplies Act 1961 if the station breached its licensing conditions, including by manipulating transaction records or misappropriating government subsidies.

He said the police were investigating the case, with KPDN also involved.

“If the station is found guilty, KPDN can suspend or revoke the owner’s CSA licence under the Control of Supplies Act.

“Besides a licence under the Petroleum Development Act 1974 (PDA), a petrol station must also hold a CSA licence to sell scheduled controlled goods,” he said at a special news conference to announce the 2026 Deepavali Festive Season Maximum Price Scheme (SHMMP) here today.

Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh was also present.

Armizan said the government would not compromise on any misuse of the BUDI MADANI subsidy, as the programme involved a substantial financial commitment to assist the public.

On Tuesday, the Finance Ministry (MoF) said it had barred a petrol station in Sungai Buaya, Nibong Tebal, from selling subsidised RON95 petrol and diesel under BUDI MADANI after detecting suspicious transactions involving suspected subsidy misuse.

According to the ministry, a review of the station’s transaction records found more than 1,000 transactions using manual bypass methods, involving over 100,000 litres of fuel and government subsidies worth more than RM270,000. –BERNAMA