Singapore's Three-Quarters (3/4) Tank Requirement & Tampering

Dear Reader,

Crude Oil
A very good weekend to you. Before we commence our discussion, we first touch upon the price of crude oil. Today, the price of crude oil is, according to various sources:

• USD78 per barrel on 15th January 2010 (Ref: Wall Street Journal, 15th Jan. 2010. Update: Oil futures: Crude drops to $78/Bbl on Weak Econ Data.)
• USD78 per barrel on 14th January 2010 (Ref: CNN, 14 Jan. 2010. Oil slides as weather warms, stocks slide.)
• USD78 per barrel for February futures at the New York Mercantile Exchange (NYMEX) and USD77.11 per barrel for March delivery at London (Ref: Reuters, 15th January 2010. NYMEX - Crude down 5th day as cold eases, dollar up.)

According to the Wall Street Journal (ibid.), the latest US economic data shows demand for energy is slowing down, perhaps an indication the American economy recovery is slowing down. Energy stockpiles are rising despite projections that colder weather would bump up fuel consumption to generate heat. Experts have identified warm weather as causing the stockpile. A stronger dollar has also been blamed for making crude oil expensive on the international market. One oil market analyst, Stephen Schork, expects crude oil to slide further to $75 per barrel, but cautioned that the present economic recovery could sustain or push prices up.

CNN (ibid.) says that last week's oil price peak at USD84 per barrel (the highest last year) was "too far, too fast", and the market is now calming down. CNN drew parallels with the American stock market, where prices rose last week, but came down this week. Warmer weather was also identified as a cause for oil's price decline. Dan Flynn, an energy trader at PFG Best, was quoted saying oil could plummet to USD40 by next week.

Reuters (ibid.) reports that the International Energy Agency expects oil demand to reach its high level this year, but discounted its growth projection by 20,000 barrels per day. Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois, was quoted saying heating oil futures made up the largest portion of oil sold, and warmer weather had affected its sales.

Singapore's Three Quarters (3/4) Tank Requirement

According to Singapore's Immigration and Checkpoints Authority website:

Singapore registered cars must have at least 3/4 tank of petrol when departing Singapore. Hybrid motor vehicles, as well as Compressed Natural Gas vehicles with petrol tanks are also subject to compliance of the 3/4 tank ruling.

Failure to do so constitutes an offence. On settlement of the offence, you will have to turn back to top up your fuel if you wish to continue on the journey.

(Source: Immigration & Checkpoints Authority. Three Quarter Tank Rule. Accessed: 16th January 2010.)

According to Singapore's Customs department, "Leaving Singapore in a Singapore-registered motor vehicle with less than three-quarter tank full of motor spirit" is an offence. The punishment for such a heinous crime is as follows:

1st offence: $100
2nd offence: $300
3rd offence: $500

The driver must turn back to fill up the fuel supply tank up to three-quarter tank full before he is allowed to leave Singapore with the motor vehicle.

If the fuel gauge of the motor vehicles is tampered, the offender will be charged in Court.

(Source: Singapore Customs. Customs Offences. Accessed: 16th Jan. 2010.)

Apparently, not declaring, or under-declaring cigarettes figures big as a customs offence as well. Interested reader can access the link above to read more. Lucky this blogger does not smoke.

It seems that the rule applies to all vehicles bearing Singapore licence plates only. Therefore this rule should not apply to vehicles bearing Malaysian licence plates.

Curious non-Singaporean readers can also read the colourful and well-written Customs Guide For Travellers, issued by Singapore Customs.

Singaporeans Tampering With Fuel Gauges

In 2008, Abu Khalid was the first person to be convicted of tampering with his vehicle's fuel gauge. On 5th August 2008, Abu Khalid bin Md Jadi, 52 years old, was convicted of tampering with the fuel gauge and fined S$500 or in default one week's jail. He was also convicted of giving false information to the Immigration and Checkpoints Authority (ICA) officer and sentenced to two weeks jail. (Source: Singapore Customs, 12th Aug 2008. Singapore Customs Media Release: Motorist with Tampered Fuel Gauge Fined and Jailed Two Weeks.) Some sordid details from the press release:

On 31 July 2008, at about 10.45 am, Abu Khalid Bin Md Jadi drove his car to Woodlands Checkpoint. At the checkpoint, when asked whether he had three-quarter tank of fuel in his car’s fuel tank, Abu Khalid declared that his fuel tank was almost full. After conducting a thorough check, a remote control switch was found hanging from the wiper lever of his car. When being questioned, Abu Khalid claimed that the remote control was malfunctioned and could not give any reason for its purpose. The ICA officer then activated the remote control and saw the fuel indicator dropped to “E”, indicating an empty fuel tank. Only then did Abu Khalid admit that the remote control was for the purpose of tampering his vehicle’s fuel gauge reading.

(Source: ibid.)

Abu Khalid informed the ICA that he had the remote control device installed at the cost of RM150 -- possibly a clue that the remote control devices are installed in Johor Bahru. There may be a booming business in Johor Bahru for installation of such remote control devices.

On 26th September 2008, Alfred Tan Chee Heng, aged 27, became the second person to be convicted of tampering with fuel gauge in Singapore. He was fined S$500 or in default one week's jail. Alfred Tan was also convicted of giving false information to an ICA officer and convicted with two weeks jail. The facts are similar to Abu Khalid's case. (Ref: Singapore Customs, 2nd Oct. 2008. Singapore Customs Media Release: Second Motorist with Tampered Fuel Gauge Fined and Jailed Two Weeks.)

On 10th October 2008, Muhammad Ali Putra Hairom, aged 24, became the third person to be convicted of tampering with the fuel gauge, and giving false information to the officer inspecting his vehicle. He, too, used a remote control device to manipulate the fuel gauge. Muhammad Ali was convicted and fined S$500 for tampering with the fuel gauge and two weeks jail for false information. (Ref: The Straits Times, 10th Oct. 2008. 3rd caught for tampered gauge.) The Straits Times (ibid.) also reported that since 2006, six (6) persons had been successfully prosecuted by Singapore Customs for fuel gauge tampering. Click here for the Singapore Customs media release on Muhammad Ali.

In 2008, Andreas was the fourth person to be convicted of tampering with the fuel gauge. On 5th December 2008, the Singapore Immigration and Checkpoints Authority (ICA) issued a press release about Andreas, who was given three chances to come clean about tampering with the fuel gauge. Andreas was caught by a kindly ICA officer who asked Andreas twice whether the car tank was three quarters full. Andreas replied in the positive. The ICA officer noticed a remote control device in the car, suspected to be used with the tampered fuel gauge. The ICA officer asked Andreas for the third time whether he had followed the three quarter tank requirement and Andreas replied in the positive. The ICA officer activated the remote control and the fuel gauge went down. Andreas was convicted in court and sentenced to S$500 fine or in default one week imprisonment. He was also sentenced to two weeks jail for giving false information to the ICA officer. (Ref: Singapore Immigration and Checkpoints Authority, 5th Dec 2008. Man threw away three chances to come clean on 3/4 tank offence, fine $500 and jail two weeks.)

So much for convictions in 2008. Much more recently, the Straits Times reported on 14th January 2010 that two men, Muhammad Shaiful Ismail, 30, and Benjamin Giam Kok Meng, 36, were "each sentenced to two weeks' jail and fined $500 for offences under the Customs Act." They were both trying to enter Malaysia at about 2am, minutes apart from each other. Both had also installed remote control devices that manipulated the reported level of fuel gauge. (Ref: The Straits Times, 14th Jan 2010. Tampered fuel gauge: 2 jailed.)

It seems that Singaporeans can avoid two weeks' jail, being punishment for declaring false information under the Singaporean Customs Act: Simply inform the ICA officer and/or the Customs officer of the remote control device if asked. However, that would be defeating the purpose of installing the remote control device in the first place.

It also seems that these would-be offenders have all been caught because a government officer managed to see the remote control switch or remote control device for manipulating the fuel gauge. Perhaps they should reconsider the shape, size and location of the remote control device.

Singapore newspaper TODAYonline reported that in 2009, twenty eight (28) people were convicted of tampering with their vehicle's fuel gauge. (Source: TODAYonline, 15th Jan. 2010. Two jailed for tampering with fuel gauges.)

HowStuffWorks has suggested that fuel gauges are inaccurate, due to the sending unit's inconsistent resistance, the float, and the shape of fuel tanks. (Ref: HowStuffWorks. How Fuel Gauges Work. Accessed: 16th Jan 2010.) It also discussed microprocessor-controlled fuel gauges.

Fuel Price By Car Size & ePetrol

On 8th January 2010, the Straits Times (Singapore) reported that the Government is launching a pricing mechanism for petrol stations to ensure that only those from eligible groups would be able to purchase petrol at subsidised rates. This mechanism will be launched on 1st May 2010. Those not identified as lower-income groups, and foreigners, will have to purchase petrol at full rates. For example, Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob said that foreigners and persons from higher income groups will be charged RM2.10 a liter of RON 95 petrol. (Ref: The Straits Times, 8th Jan. 2010. Fuel Price By Car Size.)

The report from the Straits Times appears to summarize an article in The Star (Malaysia). (Ref: The Star, 8th Jan. 2010. Fuel Price By Car Size.) The Star reported on 8th January 2010 that:

1. The unsubsidized rate of RON 95 is RM2.10 per liter.
2. The present rate of RON 95 is RM1.80 per liter, representing a subsidy of RM0.30 per liter.
3. Datuk Seri Ismail Yaakob promised, "The bigger the engine, the higher petrol will cost."
4. The government is planning to make the MyKad a compulsory part of purchasing petrol.

The government should consider the following categories of people, each of which pose different problems.

1. Those with more than one car: Will they be automatically classified as "higher income"? Which car's engine will their classification be based on?
2. Those with bigger, older cars: Obviously, a 20 year old Mercedes with a sputtering engine will cost less than a brand new Mini.
3. Those with several small cars: Obviously, they stand to enjoy the subsidy if they are classified as "lower income" based on the car size alone.
4. Those who buy using credit card: Will they be classified as "higher income" simply because of the credit card?

FOMCA secretary-general Muhammad Shaani Abdullah suggested that the government can do away with subsidies gradually. He suggested that all people can purchase up to 200 litres of subsidised petrol, after which the petrol so purchased will be unsubsidised. Further, he called on the government to cushion the effects of any price increase in petrol by limiting the increase to only a few sen per litre. Barisan Nasional youth chief Khairy Jamaluddin attempted to boost his lagging popularity by suggesting that petrol subsidies should be made available to motorcyclists and people who drive Proton Sagas and Perodua Kancils. (Ref: The Star, 8th January 2010. Wean us off subsidies, says Fomca.)

In the UK, the HM Revenue & Customs has published advisory rates for companies which subsidise employees for travel using company cars (for work purposes), and/or companies which require employees to reimburse the company for using company cars (for private purposes). The latest rates are applicable from 1st December 2009. (Ref: HM Revenue & Customs, Company cars - advisory fuel rates from 1 December 2009.) A further explanation about fuel rates can be found here.

MyKAD and ePetrol

On the topic of MyKad, in 2008, ePetrol Holdings Sdn Bhd, a local Malaysian company, had hit upon the idea of using the MyKad to regulate the amount of subsidy received by petrol purchasers at the petrol pump. (Ref: The Star, 26th May 2008. How ePetrol System Works.) ePetrol is capitalizing on the fact that the MyKad already has biometric features, and can be PIN-enabled for secure transactions. Some of the features of the ePetrol solution include:

• Linking the MyKad to a user's bank account to enable payments to be directly debited from the account;
• Keeping record of how much petrol subsidy a user is entitled to, and the balance available for the month;
• Possibility of de-linking the user's MyKad from ePetrol system in case of theft or loss of card.

ePetrol is a payment system, devised by ePetrol Holdings Sdn Bhd. (Ref: Dialog Group Berhad, ePayment Technology & Solutions.) Its main idea is a cashless mode of payment, made possible by the MyKad which every Malaysian has. In fact, ePetrol Holdings Sdn Bhd appears to have lofty plans for ePetrol payment system, which include: Fuel and food subsidy; payment; Welfare Distribution; and others. The government too, would stand to gain from the intended implementation of ePetrol:

The benefits of the system include:

• Automatically identifying consumers entitled to fuel subsidies;
• Managing the amount of subsidies to be allocated to each consumer;
• Controlling the frequency of the subsidy to be provided – weekly, monthly and so forth; and
• ·Managing how the subsidy is provided (in a lump sum or as a percentage of the purchase).

In September 2008, the Star announced that Dialog Group Berhad, which owns ePetrol Holdings Sdn Bhd, had unveiled a payment system for fuel subsidy involving MyKad. (Ref: The Star, 16th September 2008. Buy fuel with your MyKad.)

Although the ePetrol system has not been mentioned in the papers of late, the Government announced in December 2009 that it would save RM2 billion annually by implementing a fuel subsidy scheme involving the MyKad. (Ref: The Star, 2nd Dec. 2009. Government to save RM2 billion via new fuel subsidy system.) ePetrol kiosks were scheduled to be placed at all "BHP, Caltex and three Shell-branded stations owned by Dialog Group Bhd." (Please visit the link to see more diagrams.)

On the 20 Litre Fuel Cap

On 16th December 2009, a new policy began to take effect: the Malaysian government's policy to restrict sale of petrol to foreign vehicles to a maximum of 20 litres of fuel. This policy came with a caveat: It applies only to petrol stations within 50 kilometres from the Malaysian borders. (Ref: The Star, 16th December 2009. 20-litre ruling takes effect now.) Readers were further informed that:

Under the Supply Control Act 1974, any individual who violate its regulations could be fined up to RM10,000 or jailed for up to three years or both while for a company (petrol station), the penalty is it could be a fine of up to RM250,000 and/or its licence revocation.

The most obviously affected crowd would be Singaporean car owners, who drive to Johor Bahru. It was reported on a Singaporean news portal, however, that some Singaporean car owners have found a simple solution to the 20-litre fuel cap: Just drive to the next petrol station, and fill up with another 20 litres. (Ref: AsiaOne, 29th December 2009. Cap on selling 20 litres of petrol for foreign cars near Malaysian border.) Petrol station owners were also quoted in the AsiaOne report saying that they only limited Singaporean drivers to purchasing 20 litres of petrol. If such drivers want to go to another petrol station to buy another 20 litres, it is difficult for these petrol station owners to stop them.

The effect of the ban is that foreign vehicles can only fill up to 20 litres within the designated area of 50 km from the border. However, if a Singaporean were to go about doing his business in Johor Bahru, and remain within 50 km from the border, for an extended period of time: Wouldn't it be logical that the Singaporean vehicle would eventually run out of fuel? The ban would be effective, and its naysayers few, if all foreign vehicles are only in Malaysia for a few minutes. Real life, on the other hand, includes the unforeseen and the unexpected. And running out of petrol, which remaining within 50 km of the border, is such an unexpected occasion.

Singaporean drivers, it may be noted, are fully cognizant of the facts and have found several workaround solutions. On 25th December 2009, the Star reported:

• They would use credit cards issued by Malaysian banks to pay for petrol;
• They would pay for the first 20 litres by cash and the balance by credit card;
• They would fill up 20 litres at one station and fill up 20 litres at another station;
• They would fill 20 litres at a petrol station, and return to the same station to fill another 20 minutes.

(Ref: The Star, 25th December 2009. Credit card way to beng 20-litre fuel cap rule.)

Shell's V-Power is exempted from the 20-litre fuel cap policy -- at least in Johor Bahru. (Ref: The Star, 27th December 2009. Dept: Shell's V-Power exempted from 20-litre ruling.) On 30th December 2009, it was reported that the 20-litre fuel cap was not a problem to Singaporeans. (Ref: The Star, 30th December 2009. Singaporeans Okay With Fuel Rule)