KOTA BARU: The smuggling of RON95 to Thailand has grown since April as the fuel is retailing there at three times the price in Malaysia, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
The rationalisation of the diesel subsidy in Malaysia is also making smugglers switch focus to RON95, said Armizan.
The upsurge in the activity has been detected in Kelantan and Kedah.
Armizan said smugglers realised they could make a bigger profit from the sale of RON95 in Thailand.
It is learnt that RON95 sells at about RM5.90 per litre in Thailand. It is RM2.05 in Malaysia.
"There was a huge increase in the price of RON95 in Thailand in April.
"l believe this may be one of the reasons for the rampant smuggling of the fuel in states like Kelantan and Kedah.
"The impending diesel subsidy rationalisation is another reason," Armizan said at a town hall with 150 Kelantan petrol station operators here today.
He said smugglers would previously use four-wheel drives to buy fuel from petrol stations. But they now resorted to sedans.
"The use of sedans began a long time ago but of late, it has become the norm," he added.
These challenges now confront ministry officers at the border, he said, adding that petrol station operators should continue supporting efforts to thwart the smugglers.
"The ministry hopes the operators will work with it by providing information on motorists with modified tanks, who often buy fuel," he added.
