JOHOR BARU: A two-tier fuel pricing system for foreign registered vehicles will adversely affect the economy of the city.

Johor DAP chairman Dr Boo Cheng Hau said such a move would inconvenience both foreigners and local businesses dependent on the Singaporean clientele.

"A Singapore ruling that requires its vehicles to have a three-quarter full tank before entering the country already reduces the number of foreigners who enter the city solely for petrol," he said.

According to Dr Boo, besides increasing red tape, a two-tier system would also affect Malaysians holding Singapore permanent residency status who owned Singapored-registered vehicles.

"There should be uniform pricing," he said during a press conference after visiting several traders in the city.

Johor DAP vice-chairman Norman Fernandez urged the Government to weigh the cost of restricting Singaporeans to unsubsidised petrol against the economic losses suffered by traders.

"We have to look at the big picture as the situation in Johor Baru is unique. Many businesses are very reliant on the Singaporean clientele."

Meanwhile, Senai assemblyman Ong Kow Meng said that a two-tier pricing system would breach international free trade agreements.

"We will also be the laughing stock internationally if we implement the two-tier pricing system," he said, adding that Petronas should instead pay for the subsidised fuel.