Ministry of Domestic Trade and Consumer Affairs bolsters law enforcement after sharp fuel price differences between neighboring countries


Smuggling of diesel and RON 95 has harmed consumer supply and burdened the government with leaks, said KPDNHEP enforcement director Azman Adam. — Photo by Hari Anggara

Friday, June 17, 2022 10:54 PM MYT

SHAH ALAM, 17 June – The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) has detected an increase in smuggling of diesel and RON 95 fuel following rising prices and sharp price differences between Malaysia and its neighbors .

KPDNHEP Director of Enforcement Azman Adam said that apart from large-scale monitoring and enforcement efforts by its 2,200 employees nationwide, the ministry hoped the public would provide information to help eradicate crime.

“There has been a significant increase in the number of cases and the value of seized RON 95 fuel in the first five months of this year.

“During the period, 54 cases were recorded involving seizure worth RM365,116, compared to 49 cases involving seizure worth RM96,787 in the same period last year,” a- he said at a press conference here today.

Meanwhile, during the same period, KPDNHEP recorded 128 cases involving diesel with seizures worth RM3.06 million, compared to 52 cases involving seizures worth 2.2 million of RM in the first five months of last year.

He said that among the factors that led to the rise in cases were the significant differences in fuel prices between industry and subsidized tariffs (at gas stations) and higher prices in neighboring countries. .

He said smuggling of diesel and RON 95 had harmed consumer supply and burdened the government with leaks.

Earlier, Azman controlled a truck seized by the KPDNHEP which had been modified to carry up to 10,000 liters of subsidized fuel to be smuggled to a neighboring country.

He said a truck was only allowed to fill up with 250 liters of subsidized fuel at a time.

“The modus operandi of most smugglers is to refuel and suck fuel from another location before refueling, or to modify the tanks of their vehicles to be able to refuel, with the exception of certain service station operators who allow them to fill more than 250 liters of fuel at a time,” he said.

He said the KPDNHEP would take strong action against errant parties, including petrol station contractors, where their businesses could be shut down and licenses revoked.

According to Azman, action has been taken against nine service stations so far, with several more being investigated under the Supply Control Act of 1961. — Bernama


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