KOTA BARU: Traders in southern Thailand selling smuggled Malaysian subsidised diesel said they are facing difficulties getting the fuel following the subsidy reform move.
Traders running road stalls in Sungai Golok town, Narathiwat and Yala provinces said this happened a week before the Malaysian government implemented the move on June 10.
"The Malaysian government's move to cut the subsidy on diesel caused the fuel's price in Malaysia to rise to RM3.35 per litre from RM2.15," said a diesel trader who wanted to be known only as Pak Cu, 70.
"Before the move, we sold Malaysian diesel at between RM3.20 and RM3.45 per litre.
"But we now have to increase the price a little as we are facing difficulties getting supplies from our suppliers in the southern provinces."
Pak Cu, who runs a stall in Narathiwat, said he and other Thai traders now sold Malaysian diesel at between RM4 and RM4.50 per litre to motorists.
A survey in Takbai and Sungau Golok sub-provinces showed that the number of stalls selling Malaysian diesel had dropped.
There were about 40 stalls before the Malaysian government's move, but the number was now less than 30.
Thai motorists have been buying Malaysian diesel due to its cheap price compared with that sold in their country.
Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh on Saturday said a decrease in diesel smuggling was noticed through a drop in diesel sales in border towns.
She said this on the 'New Straits Times' Beyond the Headlines programme.
Finance Minister II Datuk Seri Amir Hamzah Azizan said diesel subsidies for certain groups in Peninsular Malaysia would be discontinued on June 10.
To cushion the impact of the new diesel price, the government has introduced cash aid programmes, where around 30,000 recipients received RM200 each.
The government has also introduced fleet cards for subsidised fuel for public transport companies and those transporting goods.