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Malaysia loses RM4.5 mil daily in smuggled subsidised diesel: Armizan | Scoop
Putrajaya has been working on rationalising subsidies and a mechanism to ensure that only targeted groups benefit from subsidised fuel. – Scoop pic, February 22, 2024
News

Malaysia loses RM4.5 mil daily in smuggled subsidised diesel: Armizan

RON95 petrol, subsidised by the government, is also smuggled out of the country

Scoop Reporters
Updated
6:56 PM MYT

 

KUALA LUMPUR – Malaysia’s policy of subsidising fuel has resulted in losses of RM4.5 million or 3 million litres of diesel that is smuggled abroad each day, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

He said the figure was derived from an international study by the European Union-Asean Business Council, Sinar Harian quoted him as saying in Kota Kinabalu today.

“The report states that 3 million litres of diesel is smuggled out of Malaysia daily, and RM4.5 million losses are incurred daily,” he was reported saying at a press conference after an event for ministry enforcement officers in Sabah’s capital.

Armizan also said RON95 petrol, which the government subsidises and caps at RM2.05 per litre, is also smuggled out of the country but he did not state any figures. 

The retail price of diesel is RM2.15 per litre.

Armizan also said the ministry had conducted anti-smuggling operations, called Ops Tiris, which seized RM14.2 million worth of diesel, or over 6.4 million litres, in two operations nationwide last year.

Together with other confiscated goods, the total amount of seizures made last year was worth RM42.1 million, he said.

Bernama also reports the minister as saying that Ops Tiris 3.0 from January 1 to February 15 this year confiscated over RM5 million worth of subsidised goods on their way out of the country.

Of this, subsidised diesel worth RM4.76 million and RON95 petrol worth RM90,611 were seized.

Also seized in Ops Tiris 3.0 were RM154,189 worth of liquefied petroleum gas (LPG), RM107,759 worth of cooking oil and RM35,737 worth of sugar.

“Smuggling of subsidised goods causes losses to the country and supplies do not reach those who deserve it,” Armizan said.

In Ops Tiris 1.0 and 2.0 last year, 6.4 million litres of diesel worth RM14.2 million was seized.

Putrajaya has been working on rationalising subsidies and a mechanism to ensure that only targeted groups benefit from subsidised fuel.

Currently, subsidies are targeted for electricity tariffs according to usage but subsidised RON95 petrol and diesel can still be enjoyed by all income groups. – February 22, 2024

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