Subsidised RON95 Still Widely Sold In Thailand

Photo: Bernama. Bernama reports that despite a report claiming less activity than previously, sales of subsidized RON95 gasoline smuggled from Malaysia are still going strong along the border with Thailand, specifically in the towns of Danok and Sadao.
According to the news publication, the fuel was being sold at least eight locations along the 13km stretch from the border town of Danok to Sadao. The fuel was priced between 30 baht (RM3.89) and 35 baht (RM4.53) per bottle, which is less than the retail price of petrol at Thai petrol stations, which is 35.45 baht (RM4.59) per litre.
Photo: Sinar Daily.

Diesel used to be more in demand than petrol, but many Thai citizens who were making large profits from selling diesel that was smuggled from Malaysia underwent financial hardship as a result of the Malaysian government's subsidy targeting measures, according to a seller who was interviewed by Bernama.
“Previously, the demand for Malaysian diesel was higher than petrol, but after the price of diesel was floated in Malaysia, fewer sellers deal in diesel because the profit margin is now much smaller compared with before.

Photo: Bernama.
“There used to be many diesel sellers but now most of them have stopped. Those still in business mostly sell petrol, and very few sell diesel,” he said. Roadside vendors offered smuggled diesel at a lower cost of RM3.80 to RM4 per litre, compared to the RM4.30 per litre that petrol stations in Thailand charged, according to Sinar Daily.

June of this year saw Malaysia remove its diesel subsidies in an effort to strengthen government coffers and reduce fuel smuggling. Without government funding, diesel prices have increased from 2.15 ringgit to 3.35 ringgit per litre.  There have also been reports of smuggling in Malaysian states that border Singapore and Indonesia, where fuel prices are significantly higher.