Finance ministry blocks Penang fuel station after uncovering RM270,000 subsidy fraud
A finance ministry audit found a Penang petrol station used a manual bypass for over 1,000 sales, involving more than 100,000 litres of fuel and subsidies exceeding RM270,000, prompting an immediate sales ban under the BUDI Madani scheme.
The ministry’s review exposed that a Penang petrol station conducted over 1,000 transactions through a manual bypass method, covering more than 100,000 litres of fuel and generating subsidies of over RM270,000. As a result, the outlet was barred from selling RON95 gasoline and subsidised diesel under the BUDI Madani programme, and the pending subsidy payment of more than RM270,000 was withheld. Authorities have also flagged several other individuals for possible involvement and are examining their records.
Why it matters
Fuel subsidy fraud siphons public money and weakens Malaysia's BUDI Madani programme.
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