KOTA KINABALU: A total of 4,400 litres of diesel, believed to have been smuggled, were seized in Kampung Kibabaig, Penampang near here yesterday.
The diesel was found during an operation conducted by the city's General Operations Force (GOF).
The discovery was relayed to the Domestic Trade and Cost of Living Ministry for follow-up action.
The ministry's state director Georgie Abas said enforcement officers rushed to the scene after receiving information from GOF.
"The diesel, estimated to be worth RM9,460, were discovered in six modified intermediate bulk container (IBC) tanks inside a lorry during initial inspections.
"The total value of the seizures, including two lorries, 12 IBC tanks and a pump machine, was RM58,860," he said yesterday.
A 52-year-old man was also detained to assist in investigations.
Georgie said the ministry was committed to collaborating with other enforcement agencies
to conduct inspections and take action against smuggling.
He urged the public to provide any information regarding such activities.
Meanwhile, the Petroleum Dealers Association of Malaysia raised concerns over the shift in smugglers' focus from diesel to RON95 fuel.
Association president Datuk Khairul Annuar Abdul Aziz expressed disbelief that the smuggling did not originate from petrol stations, given the numerous points in the supply chain where leakages could occur.
He said the maximum transaction for RON95 is RM150, compared with RM500 for diesel, highlighting the need for petrol dealers to be extra vigilant.
He identified two significant obstacles faced by petrol dealers.
"The commission structure set by the government does not allow us to hire enough workers to monitor all pumps at all times.
"We need higher commissions to hire more staff to monitor the front. We are also facing a shortage of Malaysian workers, particularly in urban and highway stations," he said.
He urged the government to allow the hiring of foreign workers as pump attendants and cashiers to mitigate these issues.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said smugglers now preferred RON95 following the government's diesel subsidy rationalisation announcement.
"From April this year, there was a huge increase in the price of RON95 sold in Thailand compared with our country.
"I believe this might be one of the reasons why the smuggling of RON95 is rampant nowadays in states like Kelantan and Kedah.
"Apart from that, the implementation of the diesel subsidy rationalisation by the government is also a factor.
"All these are new challenges for Domestic Trade and Cost of Living Ministry officers stationed along the country's border," Armizan said during an engagement session with Kelantan petrol operators in Kota Baru yesterday.
Armizan said smugglers used to employ lorries or four-wheel drives when buying fuel from petrol stations, but have switched to sedans to send the fuel to
buyers.
"Although sedans have been in use for smuggling for a long time, their use have been increasing and smugglers are willing to change vehicles according to suitability."
Armizan hoped petrol station operators would continue giving their support to the ministry.
"The ministry hopes the operators will work with us by providing information on suspected motorists with modified tanks filling fuel at petrol stations."
RON95 is sold at RM5.96 per litre in Thailand, while in Malaysia, it is priced at RM2.05.