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Diesel smuggling is real and here is a great example of the syndicate working

Myanmar nationals were arrested after being suspected of embezzling 8,000 litres of diesel worth RM124,200.

When Prime Minister Dato’ Seri Anwar Ibrahim tabled the 2023 budget, he took some time to highlight that enforcement agencies, in collaboration with industry players, will intensify enforcement efforts to curb the leakage of proceeds and subsidies of diesel due to smuggling syndicates.

What was he talking about? well, the recent report by Berita Harian about two foreigners getting arrested for smuggling 8,000 litres of diesel is a great example of the problems we are facing concerning diesel smuggling.

Picture credit: Berita Harian

According to BH’s report, two Myanmar nationals, aged in their 30s and 40s, were arrested in a raid in Kampung Bukit Lada, Kedah after being suspected of embezzling 8,000 litres of diesel worth RM124,200.

The operation was carried out by the Intelligence/Operations Unit of the Federal Reserve Force (FRU) of the Royal Malaysian Police (PDRM) Bukit Aman before being handed over to the Kedah Ministry of Domestic Trade and Cost of Living (KPDN).

According to Kedah KPDN director, Affendi Rajini, the police also confiscated two tanks and some diesel transporting equipment used for the activity.

“The interrogation of the foreigners found that the premises did not have permission from the supply controller to deal with the controlled goods”, said Rajini.Picture credit: Berita Harian

“The remand order was obtained from the Alor Setar Court and both suspects were remanded for four days starting yesterday”.

If convicted, they can be fined not more than RM1 million or imprisoned not more than three years or both.

For corporations, a fine of not more than RM2 million can be imposed and for the second offence a fine of not more than RM5 million.

These syndicates smuggle subsidized diesel meant for agricultural and industrial use to be sold illegally in the black market, where it is used for transportation and other purposes.

The illegal diesel is then sold to customers, including transportation companies, at a cheaper price than the regular diesel sold at petrol stations. This results in significant losses for the government, as it is unable to collect the excise duties and sales taxes on the smuggled diesel.

Myanmar nationals were arrested after being suspected of embezzling 8,000 litres of diesel worth RM124,200.

When Prime Minister Dato’ Seri Anwar Ibrahim tabled the 2023 budget, he took some time to highlight that enforcement agencies, in collaboration with industry players, will intensify enforcement efforts to curb the leakage of proceeds and subsidies of diesel due to smuggling syndicates.

What was he talking about? well, the recent report by Berita Harian about two foreigners getting arrested for smuggling 8,000 litres of diesel is a great example of the problems we are facing concerning diesel smuggling.

Picture credit: Berita Harian

According to BH’s report, two Myanmar nationals, aged in their 30s and 40s, were arrested in a raid in Kampung Bukit Lada, Kedah after being suspected of embezzling 8,000 litres of diesel worth RM124,200.

The operation was carried out by the Intelligence/Operations Unit of the Federal Reserve Force (FRU) of the Royal Malaysian Police (PDRM) Bukit Aman before being handed over to the Kedah Ministry of Domestic Trade and Cost of Living (KPDN).

According to Kedah KPDN director, Affendi Rajini, the police also confiscated two tanks and some diesel transporting equipment used for the activity.

“The interrogation of the foreigners found that the premises did not have permission from the supply controller to deal with the controlled goods”, said Rajini.Picture credit: Berita Harian

“The remand order was obtained from the Alor Setar Court and both suspects were remanded for four days starting yesterday”.

If convicted, they can be fined not more than RM1 million or imprisoned not more than three years or both.

For corporations, a fine of not more than RM2 million can be imposed and for the second offence a fine of not more than RM5 million.

These syndicates smuggle subsidized diesel meant for agricultural and industrial use to be sold illegally in the black market, where it is used for transportation and other purposes.

The illegal diesel is then sold to customers, including transportation companies, at a cheaper price than the regular diesel sold at petrol stations. This results in significant losses for the government, as it is unable to collect the excise duties and sales taxes on the smuggled diesel.

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