3 Things: New Fuel Limits in Sarawak

Effective April 1, 2026, new fuel purchase limits will be enforced across Sarawak to curb smuggling and prevent subsidy leakage. Here are the three key things you need to know about the new regulations.

Understanding the New Purchase Limits

The cornerstone of the new policy is a tiered system of purchase limits based on vehicle type. These limits are designed to distinguish between personal and commercial use while maintaining the subsidized diesel price at RM2.15 per litre. The system is straightforward:

• Private vehicles are now limited to 50 litres of diesel per transaction.
• Commercial vehicles with a gross weight under 3 tonnes can purchase up to 100 litres per transaction.
• For larger commercial vehicles over 3 tonnes, the limit is set at 150 litres per transaction.

These measures aim to ensure that subsidized fuel is consumed within the state for its intended purposes, directly addressing the issue of subsidy leakage.

Key Restrictions and Enforcement

Alongside the purchase limits, a significant restriction targets cross-border fuel smuggling. Foreign-registered vehicles are now completely banned from purchasing RON95 petrol in Sarawak. This ban is a critical component of the strategy to prevent subsidized Malaysian fuel from being taken out of the country.

Enforcement of these new fuel limits will be rigorous and widespread. The operation, known as Op Tiris 4.0, will monitor compliance across 283 fuel stations throughout Sarawak. This comprehensive surveillance network is intended to deter violations and ensure the policy’s effectiveness from its implementation date.

The Rationale Behind the Policy

The primary driver for these changes is a practical and economic one. The Sarawak government has instituted these new fuel limits with the clear objective to prevent smuggling and subsidy leakage. By controlling the volume of subsidized fuel that can be purchased in a single transaction and restricting access for foreign vehicles, authorities aim to plug the losses incurred from fuel being illegally diverted and resold. This ensures that the subsidy program remains sustainable and benefits its intended recipients—the residents and legitimate businesses of Sarawak.