Diesel smuggling cases decline significantly in Malaysia, Dewan Rakyat hears
Domestic Trade and Cost of Living Minister Datuk Armizan Ali reported that these 261 cases involved seizures amounting to RM5.24mil.
In contrast, last year recorded 655 cases with RM17.14mil in seizures, and 2023 saw 992 cases with seizures totalling RM18.04mil.
"The targeted subsidy mechanism implemented by the government has effectively addressed diesel smuggling, as evidenced by the reduction in cases," Armizan stated in a parliamentary written reply dated July 31.
Armizan was responding to Datuk Rosol Wahid (PN-Terengganu), who inquired about diesel smuggling cases in 2023, 2024, and 2025, and whether the diesel subsidy mechanism had successfully addressed the issue.
Armizan highlighted that his ministry, alongside other border enforcement agencies such as the police, the Customs Department, the Malaysian Maritime Enforcement Agency (MMEA), and the Road Transport Department (JPJ), is conducting joint enforcement efforts to tackle smuggled diesel.
Previously, it was reported that the sale of smuggled subsidised petrol and diesel from Malaysia is rampant along southern Thailand due to significant price disparities between the two countries.
Armizan noted that the targeted diesel subsidy implementation in Peninsular Malaysia, which began in June last year, has shown a reduction in diesel smuggling cases.
Under this scheme, diesel prices were floated and retailed in the peninsula starting last year.
Subsidies continue for traders using diesel-powered commercial vehicles and public transportation.
Eligible groups such as farmers, smallholders, and private diesel vehicle owners can apply for a RM200 monthly cash subsidy under the Budi Madani initiative.
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