A Singaporean named Daryl said he has been making weekly trips to the southern Malaysian state’s capital of Johor Bahru since February, not only to buy household necessities but also to refuel.
Singapore-registered vehicles are permitted to purchase only RON97 in Malaysia, where it is priced at RM5.15 (US$1.27 or S$1.64) per liter. The widely used RON95 is subsidized by the Malaysian government and restricted to locally registered vehicles.
Daryl noted that even this grade of fuel is cheaper than RON92 in Singapore, which retails at S$3.38 (US$2.62) per liter.
“But we have to be careful when doing this as under Singapore law, all exiting vehicles must have their tanks at least three-quarters full. Officials regularly carry out inspections and those caught flouting the rule face a S$500 (RM1,550) fine and will be ordered to turn back to fill their tanks,” he told The Star.
While Singapore fuel prices recently saw their first drops after weeks of increases, they remain much higher than before the Middle East conflict erupted.
Vehicles form a long queue to enter Woodlands checkpoint in Singapore on March 17, 2020, from across the causeway of the southern Malaysian state of Johor. Photo by AFP
RON95 is currently priced at S$3.40–3.42 per liter, up from S$2.88 in early February, while RON98 has climbed to S$3.92 per liter from around S$3.38–3.40, according to a chart by Channel News Asia.
Data from GlobalPetrolPrices shows the city-state has the highest RON95 prices in Southeast Asia, whereas Malaysia remains among the cheapest.
Tey Tian Hwang, chairman of Johor Baru Small Businesses Association, said the gap in prices is big enough to draw Singaporeans across the border just to refuel.
“We have yet to see panic buying happen, but there are already more Singaporeans crossing over,” he said.
D. Ravindran, chairman of the Johor Indian Petty Traders and Small Business Association, expects more of them to cross the border for shopping under existing circumstances.
“I think petrol will be what they are coming here for now, as evident at our petrol stations,” he added.
As more Singaporeans flock to Malaysia for cheaper goods, Malaysia is tightening rules on subsidized fuel by extending the ban on RON95 purchases by foreign-registered vehicles and restricting foreign-issued credit and debit cards from being used for such purchases at petrol stations starting from Wednesday, AsiaOne reported.
Authorities have also stepped up enforcement at land checkpoints with Singapore to prevent subsidized goods intended for locals from being taken across the border. A Home Ministry official recently said officers from the Malaysian Border Control and Protection Agency have in recent days begun carrying out inspections to curb such practices.
Nonetheless, Daryl said he hopes Malaysia will not limit how much fuel foreign motorists can buy.