When the Government Makes You Buy Gas

Climate change is a major topic of discussion around the world. Around the world, societies are looking for ways to both generate and use power that doesn’t emit carbon, and one of the most obvious examples of this can be seen in the automobile industry. When it comes to cars, electrification is the way of the future: governments worldwide are encouraging — if not mandating — that drivers switch to electric vehicles, all to reduce our use of carbon-emitting fuels. 

Unless you live in Singapore and are looking to leave temporarily. In that case, your government wants you to pull over and buy some gas, as seen on the sign below.

Singapore, if you’re not familiar with the nation, is a tiny city-state on an island of the same name. It is one of the most densely populated places on Earth. And it is also home to some of the highest gasoline prices in the world — by design. Singapore has a culture where cars are an afterthought and where car ownership is actively discouraged by the government. (Here’s an old Now I Know discussing this.) The public transportation system is widely regarded as fantastic and sufficient for anyone living in Singapore, and to further encourage the use of that system and discourage driving, the government taxes gas heavily. In addition, Singapore doesn’t have much, if any, oil production and low supply leads to naturally high prices.

But while that’s true for Singapore, the opposite is the case for its only neighbor, Malaysia’s population density is around the world average, and in many places, there isn’t adequate public transportation. As a result, car ownership and use is very common in Malaysia. The nation is also one of the larger petroleum producers in the world, extracting 500,000 barrels or so each day. (For context, that puts Malaysia in the top 30.) Gas is cheap there — much cheaper than in most of the rest of the world, and certainly much cheaper than it is in Singapore. As of this writing, a liter of gas costs the equivalent of $2.86 in Singapore but only $0.48 in Malaysia.

With all those drivers in Malaysia, you get a lot of commuters driving into Singapore. The Johor–Singapore Causeway (here’s a map), which connects Singapore to the Malaysian city of Johor Bahru, is one of the world’s largest international border crossings by travelers, with more than 350,000 people passing through daily. As Wikipedia’s editors note, “a vast majority of these travelers are Malaysian citizens working or studying in Singapore for its more desirable education and employment opportunities, in part due to the strength of the Singapore dollar over the Malaysian ringgit as well as a higher quality of life.” And while you can walk or take public transportation across the bridge, if you live in Malaysia, you probably own a car and, therefore, can drive to work or school if you so desire. It’s not a problem.

But if you’re a Singaporean going to Malaysia? There’s a catch, as evidenced by the sign above. Both governments are relatively permissive about travel between the two nations — that’s usually not an issue. The problem is the gasoline prices. Singaporean drivers have a huge incentive to drive to Malaysia to fill up their gas tanks — if you have a 64-liter gas tank, you’d save roughly $150 if you filled up in Malaysia. And the Singapore government doesn’t want you to do that. First, it would decrease the cost of car ownership — something Singapore has taken extensive efforts to avoid — and second, collectively, it would likely bankrupt the gas stations in Singapore.

The solution is what’s called the “Three-Quarter Tank Rule.” The Singaporean government explains on its website:

If you are taking a Singapore-registered motor vehicle out of Singapore via the land checkpoints, you must have at least three-quarters of a tank of motor fuel when you depart. The three-quarter tank rule applies to vehicles running on diesel, petrol and/or compressed natural gas (CNG). For hybrid vehicles running on petrol and CNG, drivers should ensure that both the petrol and CNG fuel tanks are at least three-quarter full.

Drivers who do not meet the rule will be committing an offence and may have to pay a fine, or be prosecuted in court.  Drivers may also be required to perform a U-turn at the land checkpoints.

The fines are significant. According to The Independent (Singapore), “non-compliance with the rule may result in a fine of as much as S$500,” or about $380 — more than twice what you’d save by filling up in Malaysia. And you won’t be allowed to continue onward if caught. Per the Singapore Customs website, “drivers are also required to perform a U-turn at the land checkpoints if they are caught committing the offense.”

Some people try to skirt the rules by filling up jerry cans (which is probably legal) or tinkering with their fuel gauges to show a fuller tank than they actually have. That second tactic is risky and illegal; as the Customs site notes, border agents check for this and “if the vehicle’s fuel gauge is tampered with, the driver may be charged in court for illegal alteration of the fuel measuring equipment.” (And remember, Singapore isn’t known for being kind to scofflaws.)

But that said, most drivers don’t go to that degree of subterfuge — they just try to get across the border without being snared by one of the random gauge checks. The first fine is only about the equivalent of $77, so it may be worth taking your chances. On April 1, 2022, Singapore and Malaysia reopened their border post-pandemic, and it seems like a lot of drivers did exactly that. Within 48 hours, 55 vehicles — more than one per hour — were turned back for noncompliance. It’s likely that a lot of others made it through.

Bonus fact: If you’re a Singaporean driving into Malaysia to fill your tank, getting across the border isn’t your only hurdle. You can buy gas at a Malaysian gas station, but you can’t buy the cheapest stuff. Malaysian gas stations typically sell 95 octane and 97+ octane gas, and the 95-rated variety is subsidized by the government. That subsidy is only meant for Malaysian residents, and it’s illegal for gas station owners to sell it to anyone else. According to Jalopnik, a gas station caught selling 95 octane to someone driving a Singapore-registered car may face fines approaching $500,000. (If you’re from Singapore, that’s not a huge problem; the 97+ octane fuel is still much, much cheaper than anything you’d get back home.)

From the Archives: No Parking: How Singapore discourages car ownership.