Fewer Foreign Vehicles Refuelling With Diesel at Border Stations Now

The number of foreign vehicles refuelling with diesel at petrol stations near Malaysia's border has significantly decreased since the targeted diesel subsidy rationalisation  was announced on June 10.

A Bernama survey at several 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, operators and workers of said pumps expressed relief as it helps curb diesel smuggling and misappropriation. 

"Only 20% 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," said station operator Mohamad Nekmat Ariffin to Bernama last week.

Having inherited the 35-year-old petrol station from his late father two years ago, Mohamad Nekmat supports the targeted diesel subsidy, especially in curbing fuel misappropriation. 

"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 deterred," he added.

He also acknowledged a decrease in diesel sales at his station after the price hike, explaining that logistics companies have switched to other petrol stations or delayed their operations while waiting for the Fleet Card Diesel to receive the fuel subsidy.

Muhammad Irfan Kamarulan, a 22-year-old worker at a petrol station on the Bukit Kayu Hitam-Jitra Highway, reported that foreign vehicles refuelling with diesel since the RM3.35 per litre price took effect on June 10 has dropped by more than 50%. 

"One reason for this decline is that foreign vehicles are refuelling less since the diesel price increase. Local vehicles are also refuelling less, possibly because they are applying for the Fleet Card Diesel," he said.

Muhammad Irfan also highlighted that he often detected the same vehicles refuelling multiple times a day, suspecting them of smuggling. To curb misappropriation, the management of his petrol station has limited diesel purchases by foreign vehicles to RM30, even though the maximum allowable limit is 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 3 KM from the border, so we feel it’s unnecessary to sell a lot of diesel to foreign vehicles," he said, supporting the government's targeted diesel subsidy initiative.

Meanwhile, Brian Yuen, 50, the manager of a petrol station in Napoh, about 18 KM from the border, reported that diesel sales at his station have decreased by around 50% as well 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. Officials from KPDN frequently inspect our station. We always monitor diesel and petrol sales and control sales to foreign vehicles to prevent misappropriation," he added.

This reduction in foreign diesel consumption reflects the effectiveness of the targeted diesel subsidy in addressing the issue of diesel smuggling and ensuring that subsidies benefit domestic consumers. KR

Source: Bernama