Late in September, it was announced that all Malaysians with a valid driving licence would be able to purchase RON95 fuel at RM1.99 per litre.

While the initiative has been well received and widely used by Malaysians, there have been reports of possible smuggling activities involving the subsidised fuel.

Image Credit: The Vibes

According to Sinar Harian, the Ministry of Domestic Trade and Cost of Living (KPDN) has not ruled out the possibility that some Malaysians living near the borders are willingly handing over their MyKads to smugglers so they can ‘claim’ the subsidised fuel.

KPDN Kelantan Director Azman Ismail said these individuals are colluding with smugglers to buy RON95 at RM1.99 per litre and profit by selling it in neighbouring countries.

Azman added that while giving MyKads to smugglers is not considered an offence, since it is the right of the cardholder, it can create opportunities for smuggling activities.

Image Credit: Berita Harian

“Although subsidised petrol is now priced at RM1.99 per litre, the unsubsidised price of RON95 is only RM2.60 per litre. This does not deter smuggling activities, as smugglers can still earn high profits by selling it in neighbouring countries,” Azman said.

He explained that smugglers can make up to RM90 in profit from a single 30-litre barrel of fuel, as RON95 in Thailand is priced at around RM5.30 per litre.

“KPDN is actively monitoring petrol stations near the borders to ensure sufficient fuel supply for locals and prevent diversion by smugglers,” he added.

Featured Image Credit: Newswav, Astro Awani