Petrol smuggling from Malaysia still detected at Thai border

Following the end of Malay subsidies, the pattern shifts from gasoline to gasoline.

Dannok town in Sadao district of Songkhla province is the busiest border crossing between Thailand and Malaysia. (Photo: Assawin Pakkawan)
The busiest border passing between Thailand and Malaysia is Dannok village in Songkhla province’s Sadao area. ( Photo: Assawin Pakkawan )

Despite conducting ordinary inspections at border petrol stations and on vehicles, Malaysian authorities are having trouble preventing oil contraband into Thailand.

Smugglers continue to carry and offer subsidized oil to Indian sellers from Malaysia’s frontier state, according to Hasbullah Abd Rashin, state director of the Perlis Ministry of Domestic Trade and Cost of Living.

He was quoted as saying in the Bernama news agency on Friday that” the sale of subsidised gasoline possible occurs when Malay cars transfer energy from their tanks or modified containers when entering the neighboring country, making diagnosis difficult.

Previous reports claimed that Thai smugglers engaged in this unlawful firm by importing gasoline into Malaysia and selling the fuel there.

Indonesian authorities are looking closely at vehicles that frequently purchase gasoline and those that are suspected of having modified tank to accommodate more gasoline. Important checkpoints are located at the cross to Kuan Don area in Satun and the towns of Padang Besar and Dannok, both in Songkhla’s Sadao district and Dannok.

Padang Besar and Kuan Don borders Malaysia’s Perlis position, while Dannok is opposite to Kedah position.

Since the Indonesian government ended oil subsidies in June, the contraband routine has changed to petrol, which still supports gasoline.

RON95 in Malaysia is currently priced at 2.05 ringgit ( 16 baht ) per litre, compared to gasohol 95 in Thailand, which costs 35.45 baht a litre.

Seized gas is sold between 30 and 35 ringgit in Thailand, according to a Bernama study, which found at least eight sites. Along the 10-kilometer span from Dannok to the Sadao city, petroleum is frequently sold in containers or gallons at roadside cafes and booths.

Additionally, reports of observations of cars and motorcycles coming to these locations for less expensive seized energy have been reported by Thai media outlets.