Despite Budi95 Bottled Petrol Trade Set To Persist In Rural Malaysia

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The sale of petrol in bottles - locally known as minyak botol - is not particularly common in the main urban centres of the Klang Valley, but the small-scale retail trade is widespread in semi-urban areas, villages, and the interior of several states.
In Kelantan, a Malaysiakini survey found that the practice is deeply entrenched, with bottled petrol sales long considered a tradition, and continuing to attract steady demand from local users.
Following the government’s announcement of the Budi Madani RON95 (Budi95) scheme, questions have arisen about the future of this trade.
Although illegal due to the absence of permits and safety protocols, the sale of bottled petrol in Kelantan is an open secret.
ADSTypically, shopkeepers purchase a quantity of RON95 petrol from petrol stations, before repackaging it into bottles - glass or plastic - in standard measures of 500 millilitres to one litre. These are then sold for between RM2 and RM4, depending on volume.
Consumers, however, end up paying more than they would at stations, where the fuel is subsidised. For example, a half-litre bottle of petrol was found selling for RM2 in Kota Bharu and Bachok, while a litre was priced at RM4 - considerably higher than the government-subsidised rate.
One shopkeeper in his 50s, who declined to be named, said he intended to continue selling bottled petrol as long as demand remained. He explained that the practice offered convenience to locals, who would otherwise have to travel long distances to reach a petrol station.
“The buyers are usually locals, elderly folk who use motorbikes for daily routines such as going to the mosque, coffee shops, or tending their gardens.
“Some also need it for other uses, like lawnmowers. It’s usually just motorbike users,” said the trader, who has been selling bottled petrol for 20 years.
Another seller, who only identified as Hamidah, 58, believed sales could even increase under the Budi95 scheme, given the purchase restrictions now imposed on RON95.
She pointed out that those without driving licences might find bottled petrol a practical alternative for fuelling motorcycles.
“Besides, each eligible person is capped at 300 litres of subsidised petrol per month. So it depends on how much they buy. In rural areas like this, bottled petrol could continue being the preferred option for locals.
“But as a trader, I’m not yet sure whether I can purchase large enough quantities for resale. Maybe I’ll use my 300-litre quota to buy and resell, or perhaps buy RON95 at the unsubsidised rate,” she said.
In demand
Malaysiakini checks also found bottled petrol on sale in Perak, Kedah, Terengganu, and Pahang, especially in remote areas with limited access to stations.
ADSIt is also popular on islands, including tourist destinations such as Tioman (Pahang), Tuba (Kedah) and Perhentian (Terengganu).
Kedah Consumers Association president Yusrizal Yusoff acknowledged that bottled sales were difficult to eradicate, largely due to the lack of accessible petrol stations in some areas.
“With the implementation of this Budi95, we are of the view that bottled petrol sales will continue.
“Now that eligible consumers are capped at 300 litres a month, some shopkeepers may simply use their own quota and resell in bottles at higher-than-market prices,” he told Malaysiakini.
He added that if authorities wanted to enforce the law, the government must first ensure residents in affected areas had adequate access to supplies.
"We cannot simply dismiss the sale of bottled petrol, as it provides convenience for locals to obtain fuel, even if they have to pay a higher price,” he said.
Sales to remain strong
Safwan Ghazali, director of the Centre for Entrepreneurship Development and Education at Universiti Malaysia Kelantan, predicted that bottled sales would remain strong during the early stages of Budi95.
He also pointed out that factors such as the distance to petrol stations, urgent needs, and the 300-litre cap would continue to drive demand.
"Although this policy closes the gap for major leakages, small-scale activities such as bottled petrol sales will continue to exist due to demand from lower-income groups, particularly in rural areas.
“Therefore, in reality, no significant change will occur unless there is strict enforcement alongside the provision of legitimate alternatives such as licensed mini-pumps, community kiosks, and mobile pumps.
“Only with a combination of control and practical solutions will Budi95 truly achieve its goals on the ground,” he told Malaysiakini.
Universiti Malaysia Kelantan’s Centre for Entrepreneurship Development and Education director Safwan GhazaliParadox
Safwan added that in practice, distance, the ability to buy small amounts, and urgent needs made bottled sales an “alternative market”.
“Legally, resale in bottles is prohibited because petrol is a controlled item with safety risks under the Control of Supplies Act 1961 and the Control of Supplies Regulations 1974.
“Yet, because of urgent needs among certain groups lacking access, and because it fulfils a market function - albeit a small one - the trade persists,” he explained.
He described the situation as a paradox: while Budi95 is meant to curb leakages, the reality on the ground is that bottled sales remain.
“Though it’s not as large a loss as cross-border smuggling, it still contributes to inefficiency and fiscal leakage. Budi95 could therefore serve as a catalyst for the government to develop mechanisms that replace this informal market,” Safwan added. - Mkini

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