General Operations Force (GOF) personnel and state police units began deploying to high-risk petrol stations across six border states at 6 a.m. Today. The Royal Malaysia Police have flagged 36 stations as hotspots for subsidized fuel leakages, with an additional 55 locations classified as high-risk. These deployments target Perlis, Kedah, Kelantan, Perak, Sabah, and Sarawak.
Acting Bukit Aman Internal Security and Public Order Department director Datuk Fisol Salleh confirmed that officers are working in shifts to maintain continuous control. Monitoring focuses heavily on the window between 6:30 a.m. And 11:30 p.m., which police identify as peak transaction hours for smuggling. Stations operating 24 hours will face round-the-clock surveillance.
Price gaps turn subsidized fuel into a cross-border asset
Global oil prices have climbed above US$100 per barrel, driven by hostilities in the Middle East and tensions around the Strait of Hormuz. Even as worldwide prices spike, Malaysia has kept subsidized RON95 petrol at RM1.99 per litre. This creates a stark disparity that syndicates exploit to move fuel overland into Thailand and by sea to other neighbors.
The difference isn’t marginal. Malaysia’s RON97 costs roughly $1.11 (RM4.95), while the equivalent Benzine 95 in Thailand sits at about $1.24 (43.95 baht/RM5.46). In Singapore, premium platinum 98 fuel reaches roughly $4.00 (S$4.00/RM12.50). These distortions effectively turn fuel into an arbitrage asset for systematic criminal networks.
This pattern mirrors previous energy shocks where extreme price gaps inevitably triggered organized smuggling. When the cost of a commodity differs wildly across a porous border, the incentive for illegal transport usually outweighs the risk of detention.
Home Ministry takes over monitoring from trade officials
Home Minister Saifuddin Nasution announced a strategic shift in how the government handles leakages. While the Ministry of Domestic Trade and Cost of Living (KPDN) previously monitored 4,000 stations nationwide, the Home Ministry is now mobilizing police to strengthen enforcement at border-area stations and at sea.
The financial stakes are immense. Malaysia now spends $1.35 billion (6 billion ringgit) monthly on fuel subsidies. This is a massive jump from the $8.5 million (315 million ringgit) monthly spend recorded between October and February last year, prior to the eruption of the Middle East conflict.
Saifuddin acknowledged that police personnel are limited, but stated that this deployment takes priority. He clarified that the police presence at petrol stations is not a long-term measure; the government will review the deployment once the global energy crisis ends.
Recent raids reveal scale of smuggling operations
Recent enforcement actions highlight the sophistication of these syndicates. In Johor, KPDN officials stopped an attempt to steal 800 litres of diesel from a Petron kiosk in Pasir Gudang, a haul worth over $4,500 (RM20,000). At the Bukit Kayu Hitam checkpoint in Kedah, the Malaysia Border Control and Protection Agency (AKPS) detained a Thai soldier suspected of smuggling petrol.
The scale extends beyond small-time theft. Thai authorities are currently investigating a Malaysian-owned logistics firm in the Sadao district after discovering approximately 100,000 litres of diesel stored on the premises.
Will police be stationed at every petrol station in Malaysia?
No. The deployment is limited to stations near border areas, specifically 36 hotspots and 55 high-risk locations, rather than the 4,000 stations monitored by the Domestic Trade Ministry.
Why is the government increasing police presence now?
The move follows a Cabinet decision to curb a rise in smuggling driven by the global energy crisis and Middle East conflicts, which have pushed global oil prices over US$100 per barrel and widened the price gap between Malaysia and its neighbors.
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