‘Betrayal’: Putrajaya cuts off Penang petrol station over suspected Budi Madani subsidy abuse

The Finance Ministry has taken action against a petrol station in Penang suspected of having abused more than 100,000 litres of fuel and more than RM270,000 in subsidies under the Budi Madani RON95 programme. — Picture by Yusof Isa

By Malay Mail

First Published: Tuesday, 27 Oct 2026 4:06 PM MYT

KUALA LUMPUR, Oct 27 — Putrajaya has cut off a petrol station in Sungai Buaya, Nibong Tebal, Penang, from the Budi Madani fuel subsidy over suspected misuse that allegedly involved customers’ MyKad details being used without their knowledge.

The Finance Ministry said its checks, triggered by police reports lodged by affected recipients, found more than 1,000 manual-bypass transactions involving over 100,000 litres of petrol and more than RM270,000 in subsidies.

“Any subsidy misuse is a betrayal of the goal of targeting subsidies, even more so while the conflict in West Asia continues to disrupt global energy supply and pressure fuel prices,” the ministry said in a statement today.

It has barred the station from selling subsidised RON95 and diesel under Budi Madani.

It did not name the petrol station.

The ministry is also withholding the station’s subsidy payments, initially more than RM270,000 and subject to further adjustment.

Nine people, including the station owner and family members, have been blocked from using the Budi Madani subsidy while follow-up action is carried out.

The ministry said it is also going through the transaction records of other individuals suspected of being linked to the case, and will act against them if they are found to have abused the subsidy.

“The government will not hesitate to take firm action against any petrol station or consumer found to have breached the Budi Madani guidelines,” it said.