NINE individuals, including a petrol station owner and family members, have been temporarily barred from using BUDI MADANI subsidies after the MOnistry of Finance (MOF) detected suspected abuse involving more than RM270,000 at a station in Nibong Tebal, Penang.
MOF said it had blocked the station in Sungai Buaya from selling subsidised RON95 petrol and diesel after complaints from eligible recipients who alleged that their MyKad details had been used without their knowledge to purchase subsidised petrol.
All complainants have lodged police reports.
A review of the station’s records uncovered more than 1,000 transactions using a manual bypass method, involving over 100,000 litres of petrol and government subsidies worth more than RM270,000.
The ministry has withheld subsidy payments to the station, with the initial amount exceeding RM270,000, pending further reconciliation.
It has also identified several other individuals suspected of being linked to the transactions and is examining their records. Further action will be taken if they are found to have abused the scheme.
The ministry said BUDI MADANI was intended to ensure petroleum subsidies reached eligible Malaysians for their designated purposes and must not be exploited for personal gain.
It warned that enforcement would continue against petrol stations or individuals found to have breached the scheme’s rules, particularly as the conflict in West Asia continued to disrupt global energy supplies and put pressure on fuel prices. - October 27, 2026