When the government announced in late September that RON95 petrol would be sold at RM1.99 per litre for all Malaysians with valid driving licences, the move was widely praised for helping ease living costs. However, the subsidy’s success has also brought about an unintended consequence — the rise of possible fuel smuggling activities near Malaysia’s borders.
According to Sinar Harian, the Ministry of Domestic Trade and Cost of Living (KPDN) suspects that some Malaysians living close to border areas may be lending their MyKads to smugglers, allowing them to purchase subsidised fuel on their behalf.
Photo via Malay Mail
KPDN Kelantan Director Azman Ismail explained that these individuals could be colluding with smugglers to buy RON95 at the subsidised rate of RM1.99 per litre and resell it in neighbouring countries for profit.
He clarified that while handing over one’s MyKad is not technically an offence, such actions create opportunities for illegal fuel diversion, “Although subsidised petrol is now priced at RM1.99 per litre, the unsubsidised rate is RM2.60. This difference may seem small locally, but smugglers can still earn large profits by reselling it across the border,” Azman said.
To illustrate, RON95 fuel in Thailand is priced at around RM5.30 per litre, which means smugglers can make up to RM90 in profit from a single 30-litre barrel.
Azman added that KPDN is increasing patrols and monitoring at border petrol stations to ensure that local communities have enough supply and to stop subsidised fuel from being channelled illegally.
This reminder serves as a caution to Malaysians to protect their MyKads and avoid involvement in activities that may indirectly support fuel smuggling!
