2-7-2024 (KUALA LUMPUR) In a crackdown on the illicit fuel trade, dozens of petrol stations in Malaysia’s northern state of Kelantan, situated near the border with Thailand, are facing potential closure for their alleged involvement in smuggling cheaper fuel into the neighboring country. This stern action comes in the wake of an investigation conducted by the Ministry of Domestic Trade and Cost of Living in Malaysia, which targeted 48 petrol stations within a 50-kilometer radius of the border.
The findings of the probe, which were submitted to the ministry’s headquarters in Putrajaya on Monday, have raised serious concerns over the stations’ direct involvement with certain parties in facilitating the smuggling of fuel out of the country. Bernama news agency reported the revelations, citing branch director Azman Ismail, who stated, “We have recommended that the stations involved be suspended due to their direct involvement with certain parties in smuggling fuel out of the country.”
While Azman refrained from explicitly naming the recipient country of the cheaper, contraband fuel, Kelantan state shares borders with the Thai districts of Waeng, Sungai Kolok, and Tak Bai in the province of Narathiwat. This proximity has likely facilitated the illicit cross-border fuel trade, capitalizing on the significant price disparity between the two nations.
In Malaysia, subsidized RON95 gasoline is priced at 2.05 ringgit (approximately 16 baht) per liter, while its equivalent in Thailand, gasohol 95, retails at a substantially higher 38.75 baht. The price gap is even more pronounced for diesel, which is priced at 3 ringgit (approximately 23.40 baht) per liter in Malaysia, despite the recent removal of subsidies. In contrast, the cheapest diesel in Thailand costs 29 baht.
The Malaysian authorities have intensified their crackdown on smugglers and petrol stations believed to be colluding with them to profit from this price differential. The targeted stations are accused of engaging in activities such as allowing repeated purchases and facilitating the filling of illegal containers, raising suspicions of their involvement in the illicit fuel trade.
Azman Ismail condemned the illegal trade as “a betrayal of the country,” emphasizing that the subsidized fuel is intended to benefit the Malaysian people, not to line the pockets of illicit profiteers. “The cheap fuel was intended to help Malaysians, not illegal profiteers,” he stated.
The potential closure of these petrol stations near the Thai border is a stern measure aimed at curbing the smuggling activities and safeguarding the nation’s interests. The Malaysian government appears determined to clamp down on the illegal fuel trade, which not only undermines domestic policies but also poses potential security risks along the porous borders.
