KUALA LUMPUR: A decline in diesel smuggling activities can be seen through the drop in diesel sales at border towns, said Domestic Trade and Cost of Living Deputy Minister Fuziah Salleh.
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 exclusive interview with the New Straits Times' Beyond the Headlines.
She added that since then, they have received fewer reports on cross-border smuggling activities.
She also said that even though the smuggling of fuel across Malaysian borders persists, she assured that through the subsidy rationalisation policy, it would not tap into Malaysian benefits.
"The diesel prices of our neighbouring countries are much higher than Malaysia. So, our cheap fuel of course becomes very attractive and a target for smugglers.
"Previously, the smuggling of fuel exploited subsidies meant for Malaysians, but now, with rationalisation being exercised, the price of diesel has been floated.
"People always find ways to smuggle out our cheap fuel, especially since diesel prices in neighbouring countries are still higher.
"But moving forwards with this policy will ensure that it no longer undermines the rights of Malaysians and that those who really need it will benefit from the subsidies," she said.
Previously, Communications Minister Fahmi Fadzil said the number of diesel smuggling cases has shown a decline particularly in the borders of peninsula Malaysia since the rationalisation of diesel subsidies came into effect.
He said that based on inspections carried out by the Domestic Trade and Cost of Living Ministry, smuggling cases have declined especially in areas near Rantau Panjang and Wong Kelian.
"Several activities believed to be smuggling (of diesel) have declined, especially in the peninsular border areas.
"Hence, it is not impossible that some smuggling activities have been successfully curbed due to the re-targeting of subsidies," he told a press conference on June 12.