PADANG BESAR: Non-subsidised fuel stations in Perlis have recorded a significant jump in diesel sales, following the government's move to implement diesel subsidies rationalisation beginning June 10.

Abdul Halim Ramli, 48, manager of a fuel station in Wang Kelian here, noted a 30 per cent increase in diesel sales, mostly contributed by Thai-registered vehicles.

Abdul Halim expressed his gratitude not only for the financial boost to his business but also for the noticeable reduction in potential subsidised diesel smuggling.

"Previously, diesel vehicles from Thailand would fill up to about 30 litres at our station before quickly departing.

"This was because they would typically refuel further away from Perlis, where they have access to purchase subsidised diesel meant for Malaysians.

"However, following with the recent changes, I frequently see customers opting to fill up their tanks to 70 to 80 litres since they no longer have access to subsidised diesel supply," he said when met at his station in Wang Kelian.

Abdul Halim said that without diesel subsidies in other stations, he is now making additional sales of RM2,000 daily.

"I think it's good that the government took this step (diesel subsidy rationalisation) because it will definitely solve the diesel smuggling problem and support legitimate diesel sales," he added.

Similarly, An Yusran, 48, who supervises a fuel station in Wang Kelian, observed a noticeable decrease in the number of Thai-registered pickup trucks in the state.

"Usually, the fast-moving pickups would fill up diesel at different stations and leave hurriedly to avoid getting caught by the authorities. There's been clearly less of that," he added.

However, An lamented that diesel sales at his station have dropped by more than 50 per cent as fewer Malaysians are purchasing diesel.

Checks by the NST around fuel stations in Wang Kelian and Padang Besar found that both petrol and diesel pumps were still actively used by consumers.

There were also almost no Thai-registered pickup trucks speeding around the state, a regular sight before the diesel subsidy rationalisation.

Across the border in Wang Prachan, Thailand, sales of smuggled subsidised diesel and petrol in clandestine sundry shops have decreased following the diesel subsidy rationalisation.

A Wang Prachan resident, Mai, in her 50s, said that Thais are struggling to get the subsidised fuel from Malaysia, particularly diesel.

"Malaysian petrol here is offered at 45 baht (approximately RM5.73) for a 1.5-liter bottle. You can still find some petrol, but diesel sold in large container tanks are harder to find," said Mai, who declined to give her full name.

Ropi Somchai, 49, a vegetable trader in Dannok, said that despite the diesel subsidy rationalisation, Malaysian diesel (Currently at RM3.35 per litre in Peninsular Malaysia) is still cheaper compared to Thailand, where it costs 32.94 baht per litre (approximately RM4.24).

"When the price of diesel in Malaysia goes up, the price of goods in Thailand also rises. Now I am considering increasing the price of my vegetables a bit," he said when met at the Malaysia-Thailand border in Padang Besar.

Meanwhile, state Domestic Trade and Cost of Living Ministry office director Norazah Jaafar assured that the ministry remains committed to curbing subsidised fuel smuggling activities.

She said until now, 46 cases have been recorded involving petrol and diesel this year.

"A total of 5,549.98 litres of diesel has been seized, amounting to RM11,932.35, while 4,513.38 litres of petrol have been seized, amounting to RM9,252.42.

She warned that action will be taken against fuel station operators colluding with syndicates involved in smuggling controlled items.

"If found guilty, we will suspend their license," she added.

https://www.nst.com.my/news/nation/2024/06/1068592/non-subsidised-fuel-stations-perlis-record-significant-jump-diesel-sales