Minister: “There has been a drop in diesel smuggling since subsidies removed”

DOMESTIC Trade and Cost of Living Deputy Minister Fuziah Salleh said a decline in diesel smuggling activities is noted with a drop in diesel sales at border towns.

Fuziah said that while the Finance Ministry’s precise data is pending, noticeable trends have already emerged in diesel sales.

“Diesel sales in towns across our border have dropped tremendously since the diesel subsidy rationalisation was announced on June 10.

“This drop is not due to fewer vehicles on the road but likely indicates a reduction in smuggling activities,” she said during an interview with the New Straits Times.

Last week, social media platforms were abuzz with pictures of empty petrol stations in Rantau Panjang, Kelantan, with captions saying they were not packed anymore with vehicles filling their tanks.

Netizens noted that these stations were used by alleged smugglers who filled their vehicles with diesel from Malaysia at subsidised prices only to drive through to Thailand to sell the pricey liquid.

On the other hand, Fuziah said if the smuggling were to persist because the price of diesel is much higher beyond Malaysia’s borders, the subsidy rationalisation policy would make sure smuggling no longer undermines the rights of Malaysians and that those who need it would benefit from the subsidies.

Previously, Communications Minister Fahmi Fadzil said the number of diesel smuggling cases has shown a decline particularly in the borders of Peninsular Malaysia, since the rationalisation of diesel subsidies came into effect.

Pakatan Harapan is under heavy criticism from several parties for the massive price hike in diesel after the application of the targeted subsidy programme. – June 15, 2024

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