PASIR MAS: The diesel subsidy rationalisation introduced on June 10 has severely impacted the activities of syndicates misappropriating the fuel at petrol stations in Rantau Panjang near the Malaysia-Thailand border.

Checks by Bernama today (June 20) found that there were virtually no Thai-registered vehicles patronising pumps at the border town.

This situation has brought relief to locals, who no longer have to compete with Thai vehicles for fuel.

Previously, a high number of Thai vehicles refuelled in Rantau Panjang to take advantage of subsidised diesel sold at the pump.

The government announced that effective June 10, diesel will be sold at the unsubsidised price of RM3.35 per litre at petrol stations in Peninsular Malaysia.

There were also concerns that four-wheel-drive vehicles and lorries owned by locals could have been used in smuggling activities.

A resident, Wan Annuar Wan Ismail, 52, said the government's action is timely as it helps prevent fuel leakage.

Wan Annuar said the presence of Thai vehicles had been a nuisance and the current situation has brought relief to residents.

"Vehicles with Malaysian number plates also need to be monitored as they might be involved in siphoning diesel by repeatedly filling their tanks before smuggling the fuel to the neighbouring country.

"The current diesel price in Thailand is RM4.24 per litre, which is still higher than the RM3.35 per litre in Malaysia. Smugglers can still make a profit of 89 sen per litre by taking diesel out of the country," he said.

A petrol station operator in Gual Tinggi, Zarith Sofia Mohd Bakri, said there had been a drastic drop in the number of Thai vehicles as it was no longer worthwhile for them to buy Malaysian diesel.

She said this was because they had to factor in foreign exchange, transportation costs and workers' wages.

"When diesel was subsidised at the pump, they (Thai vehicles) could get the fuel at half the price compared to their own country," she said.

Zarith Sofia said the diesel price float has narrowed the price difference.

Yesterday (June 19), the Domestic Trade and Cost of Living Ministry in Kelantan announced plans to instal closed-circuit television cameras at petrol stations along the Malaysia-Thailand border to monitor vehicles patronising the stations. - BERNAMA

https://www.nst.com.my/news/nation/2024/06/1066152/diesel-subsidy-rationalisation-deals-blow-fuel-smugglers-msia-thai