Petron not sole fuel supplier, Putrajaya clarifies after cronyism allegation

Raynore Mering
The allegations cropped up after a government circular on Petron’s appointment as a supplier through indent cards went viral.

PETALING JAYA, Aug 30 — The Finance Ministry has denied that Petron Fuel International Sdn Bhd has been appointed the sole supplier of fuel for the federal government’s vehicles, after it sparked allegations of power abuse and cronyism on social media.

The ministry emphasised that state oil and gas giant Petronas and global firm Shell, which have been supplying petrol and diesel for government vehicles since 1997, will also continue to do so.

It said in a press statement this evening that Petron’s recent appointment would serve to encourage “healthy competition among suppliers.”

“The government also does not limit the number of suppliers whereby any supplier with integrity and a network of stations throughout the country can apply,” it added.

The ministry also said Petron’s appointment was done administratively and did not involve any financial implication for the government.

The allegations cropped up after a government circular on Petron’s appointment as a supplier through indent cards went viral.

The point of contention was that Mirzan Mahathir, a son of Prime Minister Tun Dr Mahathir Mohamad, is a director of Petron Corporation.

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