The Ministry of Domestic Trade and Living Cost (KPDN) has not ruled out the possibility that a handful of Malaysians living near the border are willingly giving their MyKads and colluding with smugglers to divert state subsidies from the BUDI MADANI RON95 (BUDI95) to Thailand.
According to a report by Sinar Harian, KPDN Kelantan Director, Azman Ismail, shared that the action enables smugglers to buy RON95 at RM1.99 per litre and make profits by selling the subsidised petrol in neighbouring countries.
“The act of giving MyKads to smugglers is not considered an offence because it is the right of the cardholder, but it can open up space for smuggling activities,”
“Although subsidised petrol is now priced at RM1.99 per litre, the unsubsidised price of RM2.60 per litre still does not affect smuggling activities because the profits made in neighbouring countries are still high,” he said.
He further explained that smugglers can make a net profit of around RM90 for a 30-litre barrel of fuel, which is still a good profit for smugglers considering the price of RON95 in Thailand is around RM5.30 per litre.
The Ministry of Economy will assist in monitoring the situation
Azman Ismail went on to share that the Ministry of Economy will actively monitor petrol stations around the border to ensure that the supply of petrol is sufficient for locals and that it is not manipulated by certain parties, while adding that oil is still categorised under commodity control.
“Our responsibility is to ensure that the supply for the people is sufficient and not diverted by smugglers.”
KPDN has received complaints from petrol station operators and smugglers who question enforcement actions at the border, but the Ministry emphasises that the measure is important to ensure justice for the actual recipients of BUDI95.
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