PETALING JAYA: The Finance Ministry has clarified that Petron Fuel International Sdn Bhd (Petron) is not the sole supplier of petrol and diesel for federal Government vehicles.



The explanation comes after Petron's letter of appointment by the Government went viral, fuelling questions of possible nepotism as Prime Minister Tun Dr Mahathir Mohamad's son Mirzan is a director in Petron Corporation which owns Petron Malaysia.



The Finance Ministry in a statement Thursday (Aug 30) said Petronas and Shell remain as suppliers for petrol and diesel for federal Government vehicles.



"The appointment was made via an administrative measure as it relates to operational matters and does not involve any financial implications to the Government.



"With this approval, the Government obtains more choices between Petronas, Shell and Petron, and this will open more opportunities and healthy competition among petrol and diesel suppliers," the statement said.



The Ministry said that the Government does not limit the number of suppliers, adding that other suppliers who are capable and have a wide network of stations throughout the country can also apply.



A letter of the appointment addressed to Petron went viral on social media.



The letter stated that Petron Fuel International Bhd (Petron) had been appointed a fuel provider for government vehicles through indent cards.



It added that it hoped the appointment of Petron would provide "a better choice and alternative" to existing fuel providers.

Mirzan has been a director of the Filipino-based company since 2010.



Reportedly, he was elected a director on Aug 13, 2010, and holds 1,000 shares.