Fuel frenzy across Causeway: Johor businesses expect more Singaporeans to shop, fill petrol

JOHOR BAHRU – Singaporeans aren’t flocking to Johor just for groceries these days – fuel is the “obsession” for the moment.

Petrol prices have spiked sharply in the city state due to the Middle East conflict, with RON95 priced at $3.41 per litre, almost three times the price in Malaysia.

Singapore vehicles are allowed to pump only the unsubsidised RON97 fuel in Malaysia, which is being retailed at RM5.15 (S$1.64) per litre.

A Singaporean who wanted to be known only as Daryl said that since February, he has been travelling to Johor Bahru weekly, not just to stock up on household items but also for RON97.

He said RON97 is still cheaper here than RON92 in Singapore, which is being retailed at $3.38 per litre.

“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 $500 fine and will be ordered to turn back to fill their tanks,” he added.

Mr Daryl said he hoped Malaysia would not impose restrictions on the amount of fuel foreign vehicle owners could purchase.

Johor Indian Petty Traders and Small Business Association chairman D. Ravindran said more Singaporeans are expected to shop and fill petrol here under the existing circumstances.

“With what is going on around the world now, we will definitely see more Singaporeans heading here to shop and most importantly, to fill petrol.

“I think petrol will be what they are coming here for now, as evident at our petrol stations,” he added.

Echoing the view was Johor Baru Small Businesses Association chairman Tey Tian Hwang, who said the RON97 price difference is significant enough for Singaporeans to cross the Causeway just to pump petrol.

“Johor is just next door, so it is not really a problem for them to drive over to pump petrol as a way of coping with the rising cost of living there,” he said.

Mr Tey also did not dismiss the possibility of panic buying involving Singaporeans here, citing the Covid-19 pandemic period.

“It is likely for us to see that again, especially for basic daily essentials and ingredients. We have yet to see panic buying happen, but there are already more Singaporeans crossing over,” he added.

Econsave cash and carry general manager Mas Imran Adam also said there has been an increase in the number of Singaporean shoppers in its outlets.

Meanwhile, Bernama reported that the restriction on RON95 purchases using foreign credit and debit cards at self-service pumps in Malaysia from April 1 is seen as a move to strengthen the government’s fuel subsidy mechanism.

Petrol Dealers Association of Malaysia president Khairul Annuar Abdul Aziz said the measure complements the ban on RON95 sales to foreign-registered vehicles.

“This reduces reliance on manual monitoring by our workers, what with the manpower constraints,” he added.

Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman said the payment restriction system must be backed by strict on-ground enforcement.

She cautioned that loopholes might still exist, including the use of local representatives to carry out transactions.

Federation of Malaysian Consumers Associations president N. Marimuthu said the measure could mark an early step towards wider subsidy rationalisation.

“The government must ensure public funds reach those who truly qualify,” he said.

Domestic Trade and Cost of Living Ministry Enforcement director-general Azman Adam announced last week that purchases of RON95 using foreign credit and debit cards will only be allowed at the counter.

The prolonged Middle East conflict has pushed global crude oil prices up by more than 40 per cent, surpassing past US$100 per barrel and raising concerns over supply disruptions. THE STAR/ASIA NEWS NETWORK

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