PADANG BESAR: Fuel smugglers here are shifting from smuggling diesel to smuggling subsidised petrol after the government's decision to implement targeted diesel subsidy in June.
The move saw the retail diesel price at fuel stations jump from RM2.15 to RM3.50 per litre.
The significant hike eroded fat margins enjoyed by smuggling syndicates for decades through selling subsidised diesel to the industry and smuggling the fuel to Thailand. This has caused the syndicates to switch to subsidised RON95 petrol, which retails at RM2.05 per litre, as opposed to non-subsidised petrol that retails at more than RM3 per litre.
A fuel station operator, who wished to remain anonymous, said the shift was detected after the fuel smugglers swapped their diesel vehicles for petrol vehicles.
He claimed that the smugglers, who had enjoyed big profit margins from diesel smuggling, are desperate to maintain their primary source of income.
"These smugglers are also local people who are 'protected' by certain groups. We (the locals) know who they are, we know their faces. They are not poor, they're rich people.
"It's a shame that these fellow Malaysians plunder government subsidies meant for our people," he told the NST.
He said petrol vehicles filling up excessively on a single trip was a clear indication that petrol smuggling had begun to take shape.
"When we checked our records and examined CCTV footage, we found that Proton Wira cars and other smaller engine capacity vehicles filling petrol up to RM100 at one time.
"This does not make sense as these cars do not have large petrol tanks, so something is amiss. They probably have an additional tank installed for smuggling."
Abd Rahman Jamil, 30, a fuel pump attendant in Padang Besar, said his employer had told him to monitor the situation.
He said this was in line with the Perlis Domestic Trade and Cost of Living Ministry's directive, which prohibits repeated sales of diesel and petrol to local and foreign vehicles within the same day.
"I maintain a checklist of the vehicles that come to refuel. If I spot a pattern of repeated purchases, I politely request them (vehicle owners) to leave. Should they refuse, I inform my superiors about it."
Meanwhile, Perlis Domestic Trade and Cost of Living Ministry director Norazah Jaapar said fuel smuggling in the state had taken a noticeable dip.
However, she acknowledged that fuel smugglers had now opted to smuggle petrol following the government's move to implement the targeted diesel subsidy.
"Since June 10, fuel smuggling in this state has taken a dip.
"There's no denying that syndicates have shifted to smuggling petrol. However, through active enforcement and cooperation with border enforcement agencies, this activity is kept in check."
Norazah also said to date, no complaints regarding petrol smuggling had been filed in the state.