Diesel seizures down 87% after subsidy reform, but RON 95 smuggling on the rise – Armizan

Here are more findings and figures support the government’s big call to eliminate the general subsidy on diesel. Leakage through smuggling was cited as the main reason for rationalizing the subsidy, and indeed, seizures of smuggled diesel have dropped sharply since June 10, the day diesel prices at the pump increased by 56% to RM3.35 a litre.

According to Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, diesel seizure cases have dropped by 87%, based on cases in the 20 days before June 10 and the 20 days after.

He said that from May 20 to June 9, there were 65 cases of diesel smuggling with a total volume of 520,803 liters, while from June 10 to 30, statistics showed that there were only 14 cases of diesel smuggling with a total volume of 68,457 liters. The number of individuals arrested for diesel smuggling has decreased from 40 to one during the same period.

So they are right – with the diesel price differential between Malaysia and our neighbours narrowing significantly since 10 June, the reward for the risks involved is much less. Not worth the effort, so to speak. But they can always switch from diesel to petrol, you say.

They did. The Papar MP revealed that the number of RON 95 petrol smuggling cases increased from 37 cases involving 17,064 litres (from May 20 to June 9) to 46 cases involving 14,011 litres in the 20 days after June 10. The number of individuals arrested increased from 10 to 17 in the same period. But it is only a matter of time before the general subsidy on RON 95 is abolished, regardless of the date. soon or later this year.

To crack down on smuggling, his ministry will strengthen enforcement and monitoring of controlled goods through Operation Tiris 3.0 nationwide, the KPDN minister said.

Looking to sell your car? Sell it with Car.