Petrol stations face licence revocation for BUDI scheme abuse

Petrol station operators found abusing the BUDI initiative risk losing their operating licences, according to Domestic Trade and Cost of Living Minister Armizan Mohd Ali. The warning signals heightened government resolve to protect the integrity of the fuel subsidy programme, which aims to provide affordable petrol to Malaysian consumers.

Armizan said the government can take enforcement action against offending stations under the Control of Supplies Act 1961, which grants authorities broad powers to regulate the supply and distribution of essential goods. Licence revocation represents one of the most severe penalties available to regulators seeking compliance with the scheme's terms.

The BUDI initiative, formally launched to stabilize fuel costs and support household budgets, requires participating petrol stations to maintain compliance with prescribed pricing and operational standards. Violations reported to authorities have prompted the government to demonstrate its commitment to accountability across the retail fuel sector.

The minister's statement underscores the government's determination to prevent misuse of subsidized fuel supplies and ensure the programme's benefits reach intended consumers. Further details on specific enforcement cases were not disclosed.