PADANG BESAR, Perlis – Police personnel will be stationed at all petrol stations along the country’s borders to foil potential smuggling of millions of litres of diesel and petrol, says Saifuddin Nasution.
The Home Minister said this aligns with the Cabinet’s directive last week as smuggling is expected to increase due to the spike in fuel prices caused by the Middle East conflict.
He told the media this during his working visit to monitor border operations at the Malaysia-Thailand border on April 11.
Mr Saifuddin was accompanied by Malaysia Border Control and Protection Agency (AKPS) director-general Commander Mohd Shuhaily Mohd Zain and top police chiefs from Perlis and Kedah.
He stated that from Jan 1, 2025 to March, border patrol foiled 735 smuggling cases worth 2.81billion ringgit (S$903 million)
“The Home Ministry is committed to curb all forms of fuel smuggling along the borders.
“We are now spending 6 billion ringgit monthly on fuel subsidies alone, compared to 315 million ringgit monthly between October and February last year before the conflict erupted.
“Fuel smuggling is done by syndicated criminals who are very systematic and are continuous in their actions. Police personnel will be stationed at petrol stations along the border to foil fuel smuggling.
“We may be short of personnel but this will take priority, however, the lack of personnel will not compromise other police duties,” said Mr Saifuddin.
Earlier, Mr Saifuddin took an aerial survey of several strategic locations along the border.
“We went to Durian Burung, Bukit Kayu Hitam and ended in Padang Besar. I also went down to the ground to observe enforcement control activities at several checkpoints and along Jalan Kasban for monitoring. Tomorrow, I will continue in Pengkalan Hulu.
“The impact of fuel smuggling on the country is real due to the Middle East conflict. If supply shortages are possible, it becomes the responsibility of authorities, especially the Home Ministry and related agencies to ensure there are no leakages, loss, or smuggling.
“The government’s strategy is to address leakages and smuggling in three parts – namely land areas previously under the Domestic Trade and Consumer Affairs Ministry,” said Mr Saifuddin.
He said that although the Domestic Trade Ministry previously monitored petrol and diesel leakages at 4,000 petrol stations nationwide, the Home Minister’s vast authority will now strengthen monitoring not only at land borders but also at sea.
“Recently, it was decided that petrol stations near borders will also involve police monitoring. Previously, enforcement was under the Domestic Trade Ministry, but now police will also mobilise to prevent smuggling activities, especially at border-area petrol stations.
“This will not be a long-term measure. If the crisis ends, we will review the deployment. Not all 4,000 petrol stations are involved – only those near border areas. The purpose is specifically to curb smuggling activities,” said Mr Saifuddin.
He said the smuggling of fuel happens three ways.
“Retail smuggling is buying subsidised diesel or petrol or goods and transporting them (often by sea) for resale. Enforcement records show seizures of between one to three million litres per month.
“It also involved bunkering (ship-to-ship transfers at sea).
“Then there is the abuse of fishermen’s subsidies whereby the Ministry provides heavily subsidised diesel (about 1.60 to 1.70 ringgit per litre, compared to market price of 6 ringgit. This price gap encourages misuse, where fuel is resold instead of used for fishing.
“This creates what is called “channel shifting” – buying cheap subsidised fuel and reselling it at higher prices, including for commercial use.
“The most serious cases based on Malaysian Maritime Enforcement Agency and Coast Guard records are in Perlis, Kedah and Langkawi, involving boats that transport fuel in modified tanks and sell it across the Thai border.
“In the East Coast (Kelantan, Terengganu, Pahang), subsidised fuel meant for fishermen is misused for ship-to-ship transfers in the Exclusive Economic Zone. In the South (Straits of Malacca and Johor), there are serious bunkering activities involving anchored ships.
“In Sabah (for example, Lahad Datu, Semporna, Tawau), smuggling uses pump boats, with fuel stored in mangrove areas and moved at night. In Sarawak (Miri, Bintulu, Tanjung Manis), subsidised diesel is sold to tugboats and offshore vessels in the South China Sea. Bukit Kayu Hitam and Padang Besar are also among the serious routes used for inland smuggling,” said Mr Saifuddin.
He added that a whole-of-government approach was necessary.
“If leakages and smuggling are not controlled, these subsidies will be wasted and harm the country’s finances. Cooperation across all agencies is key to success,” said Mr Saifuddin. THE STAR/ ASIA NEWS NETWORK