Malaysia targets border fuel outlets supplying smugglers

Malaysia targets border fuel outlets supplying smugglers
Malaysia targets border fuel outlets supplying smugglers

Malaysian official says cheap fuel is intended to help Malaysians, not profiteers

Malaysia targets border fuel outlets supplying smugglers
This lorry was caught offloading diesel smuggled from Malaysia to a pickup truck when police raided these premises in tambon Thung Lung in Hat Yai district of Songkhla on April 20 last year. (Police photo)

Dozens of petrol stations in Malaysia near the border with Thailand face potential closure for involvement in the smuggling of cheaper fuel into Thailand.

This follows an investigation by the Ministry of Domestic Trade and Cost of Living in Malaysia’s Kelantan state, which adjoins Narathiwat province in Thailand.

The probe targeted 48 petrol stations within 50 kilometres of the border. The findings were submitted to the ministry’s headquarters in Putrajaya on Monday, Bernama news agency reported citing branch director Azman Ismail.

“We have recommended that the stations involved be suspended due to their direct involvement with certain parties in smuggling fuel out of the country,” Mr Azman was quoted as saying.

The official did not name the recipient country of the cheaper, contraband fuel. However, Kelantan borders Waeng, Sungai Kolok and Tak Bai districts in Narathiwat.

Malaysian authorities have been cracking down on smugglers and petrol stations believed to collude with them in profiting from the price difference between Thailand and Malaysia.

In Malaysia, subsidised RON95 is priced at 2.05 ringgit (16 baht) per litre while its equivalent in Thailand, gasohol 95, retails at 38.75 baht. Diesel in Malaysia is priced at 3 ringgit a litre (23.40 baht) despite there being no subsidy since last month. The cheapest diesel in Thailand is 29 baht.

The stations being targeted include those allowing repeated purchases and filling up illegal containers.

Mr Azman slammed the illegal trade as “a betrayal of the country” because the cheap fuel was intended to help Malaysians, not illegal profiteers.