MoF Suspends Nibong Tebal Station Over BUDI MADANI Abuse

The Ministry of Finance (MoF) has suspended a petrol station in Sungai Buaya, Nibong Tebal from selling subsidised RON95 petrol and diesel under BUDI MADANI on Tuesday, 27 October 2026, following suspicious transactions exceeding RM270,000 in government subsidies.

The enforcement action follows police reports lodged by BUDI MADANI beneficiaries after discovering their MyKad credentials were used without consent. Audits uncovered over 1,000 manual bypass transactions involving more than 100,000 litres of petrol, prompting MoF to withhold initial subsidy reimbursements exceeding RM270,000 pending ongoing reconciliations.

Key Facts

The key facts regarding the Ministry of Finance enforcement action encompass verified transaction numbers, fuel volumes, financial sums withheld, and identity restrictions imposed at the Sungai Buaya petrol station in Nibong Tebal following the detection of fraudulent manual bypass operations under the BUDI MADANI targeted subsidy initiative.

The Ministry of Finance has withheld an initial subsidy payout exceeding RM270,000 from the Nibong Tebal petrol station following more than 1,000 fraudulent manual bypass transactions.

How Was the BUDI MADANI Fuel Subsidy Misused?

The BUDI MADANI fuel subsidy was compromised through more than 1,000 unauthorised manual bypass transactions at the Sungai Buaya filling station, where operators misappropriated genuine recipients' MyKad identification data without their consent to siphon over 100,000 litres of subsidised RON95 petrol valued at more than RM270,000.

According to reports from Astro Awani and Bernama, the illicit transactions triggered official investigations after affected beneficiaries discovered their personal identities had been used to claim subsidised petrol quotas, prompting them to lodge police reports against the station.

“The MADANI government will not hesitate to take stern action against any petrol station or user found violating BUDI MADANI guidelines.”

Ministry of Finance

Alongside suspending fuel sales and withholding more than RM270,000, the ministry barred nine individuals, including the station proprietor and immediate family members, while auditing additional suspects linked to the case.

Federal authorities detected over 100,000 litres of petrol misappropriated under BUDI MADANI through unauthorised MyKad usage and manual terminal bypasses at the Nibong Tebal station.

Who Is This For in Malaysia?

This enforcement action directly impacts Malaysian motorists registered under the BUDI MADANI RON95 and diesel subsidy programmes, retail fuel station operators nationwide, and consumers in Nibong Tebal who must ensure their MyKad credentials remain protected against unauthorised manual bypass transactions at commercial fuel retail outlets.

For Malaysian recipients relying on BUDI MADANI diesel and RON95 support, the incident highlights the enforcement measures governing subsidised fuel distribution. The Ministry of Finance continuously monitors transaction telemetry to safeguard public funds, warning that stations and individuals flouting regulatory guidelines face immediate suspension, payment withholding, and police referrals.

The Ministry of Finance has barred nine individuals, including the petrol station owner and their family members, from accessing BUDI MADANI subsidy facilities during ongoing investigations.

Common Questions

How was the BUDI MADANI subsidy system breached in Nibong Tebal?

The petrol station executed over 1,000 unauthorised transactions using manual bypass methods, exploiting registered recipients' MyKad details without their consent to illicitly distribute more than 100,000 litres of subsidised petrol worth over RM270,000 in government subsidy funds.

Who has been penalised under the Ministry of Finance enforcement action?

The Ministry of Finance suspended the Sungai Buaya station from dispensing subsidised fuel and barred nine individuals, comprising the station owner and family members, from BUDI MADANI benefits while reviewing records of other connected persons.

What financial action was taken against the suspended petrol station?

The Ministry of Finance withheld an initial subsidy reimbursement sum exceeding RM270,000 owed to the petrol station, with the final withheld settlement remaining subject to further administrative adjustments following comprehensive transaction audits.

Sources and Methodology

This report details Ministry of Finance enforcement actions regarding BUDI MADANI fuel subsidy abuse at a Nibong Tebal petrol station, compiled by translating and analysing official disclosures reported by Careta via Bernama and Astro Awani dispatches without external factual estimation.

Original report: Careta

Facts in this article were translated from the original Malay source text. All financial figures are cited in Ringgit Malaysia (RM) as originally reported. This article is based on the source report above and was last updated on 28 October 2026.