KPDN To Suspend Petrol Station Licence Over Subsidy Misuse - Armizan

KUALA LUMPUR, Oct 29 (Bernama) -- The Ministry of Domestic Trade and Cost of Living (KPDN) will suspend or revoke a petrol station's Control of Supplies Act (CSA) licence in Nibong Tebal, Penang if it is found misusing the BUDI MADANI petrol subsidy.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government could take such action under the Control of Supplies Act 1961 if the petrol station breaches licensing conditions, including manipulating transaction records or misappropriating government subsidies.

He said the Royal Malaysia Police (PDRM) is currently conducting investigations, with KPDN involved.

"On KPDN's part, should they be found guilty later, among the actions we can take is to suspend or cancel the CSA licence of the station owner under the Control of Supplies Act.

"To operate a petrol station, besides a licence under the Petroleum Development Act 1974 (PDA), one must also have a CSA licence for scheduled controlled goods," he said at a special news conference announcing 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 will not compromise on any misappropriation of the BUDI MADANI subsidy because the programme involves a large financial commitment to assist the public.

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

According to MoF, a review of the petrol station's transaction records revealed over 1,000 transactions using manual bypass methods, involving more than 100,000 litres of petrol with a government subsidy value exceeding RM270,000.

-- BERNAMA