The Ministry of Domestic Trade and Cost of Living (KPDN) in Malaysia is currently evaluating a proposal to allow Brunei-registered vehicles to purchase RON95 petrol in Miri, a city in the Malaysian state of Sarawak. This consideration comes amidst ongoing discussions and debates surrounding fuel policies affecting Bruneian visitors to Malaysia, particularly in regions close to the Brunei-Malaysia border.
Current Fuel Policy and Challenges
Currently, foreign vehicles, including those from Brunei, are restricted to purchasing only RON97 petrol in Sarawak. This policy aims to prevent fuel smuggling due to the significant price difference between subsidized RON95 in Malaysia and fuel prices in Brunei. The existing rule has led to some confusion and challenges, particularly highlighted by a recent incident involving a Brunei convoy that faced difficulties obtaining diesel fuel during their travels in Sarawak. The misunderstanding arose from the policy that limits the sale of diesel to foreign vehicles within a 30km radius of the border to 20 liters, while beyond this radius, there are no restrictions provided the fuel is used within Sarawak.
Proposal to Allow RON95 for Bruneian Vehicles
The proposal to allow Brunei vehicles to access RON95 petrol aims to enhance the travel experience for Bruneian tourists and address any supply issues of RON97 in areas frequently visited by them. Minister Datuk Armizan Mohd Ali emphasized that the ministry is committed to refining its policies by analyzing data concerning petrol stations supplying RON97 in Sarawak, particularly in Miri. He stated, "We will look into this proposal by looking at certain data and at the same time take into account the supply of RON97 petrol in Sarawak, especially in Miri. We will also look into the focus areas of visitors or tourists from Brunei to determine whether there is a supply problem of RON97 in the areas".
Economic and Social Implications
Allowing Brunei vehicles to refuel with RON95 could have several implications. Economically, it could boost tourism and local businesses in Miri by making it more convenient for Bruneian tourists to travel within the region. Socially, it could strengthen cross-border relations between Malaysia and Brunei, fostering a more collaborative and friendly environment. However, the proposal also raises concerns about potential fuel smuggling and the impact on local fuel supplies. The ministry plans to engage further with the Ministry of Finance to refine the proposal, taking into account key data and ensuring that local policies effectively prevent illegal activities.
Stakeholder Involvement and Future Steps
The proposal has garnered attention from various stakeholders, including local leaders and representatives from petrol stations. The ministry has assured that it will continue to engage with these stakeholders to address any concerns and ensure a smooth implementation of the policy if approved. Minister Armizan highlighted the importance of collaboration, stating, "The ministry will engage further with the Ministry of Finance to refine this proposal. We will take into account factors such as petrol stations supplying RON97 in Sarawak, particularly in Miri, and areas frequented by visitors and tourists from Brunei".
The consideration to allow Brunei vehicles to pump RON95 in Miri reflects a proactive approach by the Malaysian government to address fuel supply challenges and enhance bilateral relations with Brunei. While the proposal presents potential benefits, it also requires careful consideration of economic, social, and regulatory factors to ensure a balanced and effective policy. As discussions continue, the outcome of this proposal could set a precedent for future cross-border collaborations and fuel policy adjustments in the region.
