You can read why the Domestic Trade Minister thinks he has to ban foreign motorists from buying fuel in this malaysiakini article:
"No fuel stop for foreigners at the border"
No doubt Malaysians have been enjoying cheap fuel prices when compared to other nations but we are an oil-producing nation and that should be expected. After all we did use oil monies to put up that grand PETRONAS TWIN TOWERS to satisfy some nationalistic egos and made some millionaires in the process.
But this ban of fuel to foreigners is going to create some interesting scenarios such as:
1. Malaysians will learn how to transfer fuel from Malaysian-registered cars to foreign vehicles.
2. Some business owners will provide this service to their loyal customers.
3. As usual the clamp-down will be done vigorously - for ONE week or month.
4. Singapore may relax the three-quarter tank rule and surprisingly find that cars will still be filled when they return from Malaysia.
5. Remote petrol stations will see a dramatic spike in sales.
But how does Malaysia operate on the Subsidy Principle? For more than 35 years the government has been pushing the NEP down our throats and that is the mother of all subsidies!