KOTA BARU: The crackdown on diesel smuggling by the Kelantan Domestic Trade and Cost of Living Ministry along the Kelantan/Thai border has prompted many smugglers to cease their activities.
The local smugglers, who have been working with their Thai counterparts for many years, have chosen to stop smuggling subsidised diesel for now.
They fear being arrested by the ministry's officers as well as other agencies.
"The crackdown on diesel smuggling by Malaysian authorities has become a hot topic among smugglers in Kelantan and Thailand.
"We have discussed this at the coffee shops and our meeting points along the Sungai Golok riverbank.
"The arrest of between four and five smugglers by the ministry's officers in a month and the deployment of officers at petrol stations in Tumpat and Rantau Panjang to check on this menace have made us afraid," said a smuggler, who only wanted to be known as Hussin.
The 33-year-old, who became a smuggler at the age of 18, said many of his friends had now opted to smuggling other goods.
"Although smuggling diesel was lucrative as there is high demand in the neighbouring country, the risks of being are too great.
Many of us have decided to switch from diesel smuggling to other items.
"We realise that smuggling other goods is also a risk but we do not mind getting small takings as long as we are not caught with subsidised diesel," he added.
The smuggling of diesel, petrol and other Malaysian subsidised items has occurred at the Kelantan/Thailand border for many years.
Diesel was normally highly sought by Thai motorists as its price was much cheaper compared with the fuel sold in the kingdom.
The sale of diesel in Thailand by petty traders could be seen elsewhere in the southern part of the country from the Sungai Golok sub-province to Narathiwat province.
It is learnt that more than 40 stalls were set up by Thai traders to sell Malaysian subsidised fuel along the roadside in the provinces.
The Kelantan authorities launched a massive operation against diesel smuggling of late along the border town with the Sungai Golok sub-province.
Its director, Azman Ismail, recently said the ministry had stationed its officers at four petrol stations in the state from May 1.
He said the move was also aimed at nabbing petrol station operators working in cahoots with the diesel smugglers.
It was reported today that the government would implement a floating diesel price mechanism alongside targeted diesel subsidies to curb fuel subsidy leakages, which have become increasingly prevalent.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the diesel subsidy, which amounted to RM1.4 billion in 2019, surged tenfold to RM14.3 billion last year due to several factors.
He highlighted that the consumption of subsidised diesel rose from 6.1 billion litres in 2019 to 10.8 billion litres last year, marking an approximate 70 per cent increase.