The number of foreign vehicles refuelling with diesel at petrol stations near the Peninsula's border in the north has significantly decreased since the targeted diesel subsidy was announced on June 10.
A Bernama survey at petrol stations near the Bukit Kayu Hitam Immigration, Customs, Quarantine, and Security Complex (ICQS) found only a few vehicles with Thai registration plates refuelling.
Although this might reduce profits for these petrol stations, several operators and workers were glad that it had helped curb diesel smuggling and misappropriation.
Mohamad Nekmat Ariffin, 41, who ran a petrol station in Changlun, about 8km from the Bukit Kayu Hitam ICQS, said the number of foreign vehicles at his station had significantly decreased since the price of diesel increased.
However, he said it did not affect his business, as 80 per cent of his diesel sales were allocated to logistics companies that were regular customers.
"Only 20 per cent of our diesel quota is sold to private or other commercial vehicles, including foreign vehicles, which are limited to purchasing only 20 litres per transaction.
"But now, there are very few foreign vehicles refuelling here. Previously, there were many foreign four-wheel-drive vehicles. Only passenger vehicles like vans still refuel with diesel here."
Nekmat, who has been running the 35-year-old petrol station inherited from his late father two years ago, also supported the targeted diesel subsidy, especially in curbing exploitation.
"Sometimes foreign vehicles or those intending to smuggle diesel will refuel at several stations. We can't track their movements or how many times they refuel.
"So by increasing the diesel price, we hope diesel smuggling can be curbed," he said.
He also acknowledged a decrease in diesel sales at his station after the price hike, explaining that it was due to logistics companies switching to other stations, and some companies delaying their operations while waiting for fleet cards to utilise the fuel subsidy.
Muhammad Irfan Kamarulan, a 22-year-old worker at a petrol station on the Bukit Kayu Hitam-Jitra Highway, said foreign vehicles refuelling with diesel at his workplace had dropped by more than 50 per cent.
"We sell two types of diesel here, Euro5 B7 and Euro5 B10. Previously, we sold about 8,000 litres of B10 diesel daily, but now sales have dropped to between 5,000 and 6,000 litres per day.
"One reason for this is that foreign vehicles are refuelling less since the diesel price increase.
"Local vehicles are also refuelling less, possibly because they are still applying for the fleet card," he said.
Irfan said previously, he often recognised the same vehicles refuelling multiple times a day, and he suspected the drivers were smuggling fuel.
To curb misappropriation, the management of his petrol station had limited diesel purchases by foreign vehicles to RM30, even though the maximum allowable limit was 20 litres.
"Sometimes, vehicles refuel with diesel up to three times a day. We can't be sure if they are regular users or involved in misappropriation, so we limit diesel purchases to RM30 per refuel for foreign vehicles.
"If the same vehicle returns, we reduce the purchase limit to RM20.
"The petrol station is only about 3km from the border, so we feel it's unnecessary to sell a lot of diesel to foreign vehicles," he said.
Brian Yuen, 50, the manager of a petrol station in Napoh, about 18km from the border, reported that diesel sales at his station had decreased by around 50 per cent following the price increase.
"But it's not a big issue because our station focuses on selling petrol. Previously, we sold about 1,000 to 2,000 litres of diesel daily, but now it has dropped to just a few hundred litres a day.
"Domestic Trade and Cost of Living Ministry officers frequently inspect our station. We always monitor diesel and petrol sales, and control the sale to foreign vehicles to prevent misappropriation," he added.
