Fuel smugglers begin switching to RON 95 petrol after gov’t announces targeted diesel subsidy plan – KPDN


Fuel smugglers begin switching to RON 95 petrol after gov’t announces targeted diesel subsidy plan – KPDN

Malaysian consumers aren’t the only ones preparing for changes that will surely come about with the upcoming rationalisation of diesel subsidies, because fuel smugglers in the northern part of the country are too, having already started making the switch from smuggling diesel to RON 95 petrol, Bernama reports.

According to domestic trade and cost of living (KPDN) minister Datuk Armizan Mohd Ali, cases involving the smuggling of RON 95 petrol into Thailand have been on the climb ever since the government announced it was preparing to implement targeted subsidies for diesel.

It was reported last month that an estimated RM1.2 million of subsidised diesel was being smuggled into Thailand daily via the Bukit Kayu Hitam immigration, customs, quarantine and security (ICQS) complex.

Now, with diesel set to no longer have any allure in financial terms once the blanket subsidy for it is removed, smugglers are now focusing on the fuel that will continue providing them a tidy profit, at least until it too undergoes the rationalisation process.

Fuel smugglers begin switching to RON 95 petrol after gov’t announces targeted diesel subsidy plan – KPDN

“As a result of monitoring carried out by enforcement officers stationed at the eight main entry points in Kelantan, Perak, Kedah and Perlis, there is information that they are changing their strategy,” Armizan said.

“At the same time, my ministry has found that the modus operandi of smugglers is that they make repeated purchases of fuel at petrol stations around the bordering states. Previously, they used four-wheel drives to smuggle petrol, but now, they modify the petrol tanks of sedans to fill the excess petrol,” he added.

To overcome this problem, Armizan said the ministry has issued a supply controller’s instruction to petrol station owners to monitor and report vehicles that are detected making repeat purchases, and this will come into effect on June 7. “Additionally, my ministry will also strengthen cooperation with the road transport department (JPJ) to carry out monitoring and inspections to detect modified vehicles,” he said.

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