Posted by EngineeringProfit > 3 weeks ago | Report Abuse

Fuel and cooking oil smuggling from Malaysia to neighboring countries like Thailand and Indonesia results in significant public fund losses each year due to the disparity in prices created by government subsidies. Malaysia offers petrol at a subsidized rate of RM2.05 per liter, significantly lower than the market rate in Thailand, where comparable fuel costs about 35.45 baht (around RM4.50) per liter. Similarly, cooking oil is priced at RM2.50 per kilogram in Malaysia, compared to RM8 in Thailand. These price differences incentivize smugglers, particularly in border areas, where they sell Malaysian-subsidized goods for substantial profit. Despite ongoing enforcement efforts, fuel and cooking oil smuggling remains a persistent issue. Authorities have found that smugglers often use modified vehicles to transport fuel across the border. Cooking oil smuggling, while reportedly reduced in recent years, continues to appeal to southern Thai residents who prefer Malaysian products for their affordability and perceived halal quality. In a recent period from January to August, seizures of controlled goods at the Malaysian-Thai border—including fuel and cooking oil—amounted to about RM451,378, with additional losses likely not accounted for due to undetected smuggling operations. These activities continue to undermine Malaysia's subsidy programs, costing the government millions of ringgit annually in lost revenue. Effective control remains challenging due to the extensive border and high demand in neighboring countries, leading to a recurring drain on public funds.