Kuala Lumpur  - Malaysia has announced a ban on the sale of its subsidized fuel to foreign cars at all petrol stations within 30 to 50 kilometres from the country's borders, news reports said Tuesday.

The ban, which is to take effect Friday, concerns petrol stations in five states closest to the northern border with Thailand and the southern border with Singapore, Domestic Trade Minister Shahrir Samad said.

Shahrir said the ban, which would be enforced on 200 to 300 petrol station operators, seeks to stop foreigners from enjoying a government fuel subsidy.

"This move is a stern act by the government to reduce the leak in subsidy, ... which should actually be enjoyed by the lower-income group in the country," Shahrir was quoted as saying by the official Bernama news agency.

He said ministry officers would be deployed at stations near the borders, adding that owners who flout the ban face a fine of up to 250,000 ringgit (75,760 dollars) and three years in jail. (dpa)