Here are more discoveries and figures that back the government’s big call to remove blanket subsidies for diesel. Leakage via smuggling was cited as the main reason for subsidy rationalisation, and true enough, seizures of smuggled diesel are massively down since June 10, the day that the diesel pump price jumped 56% to RM3.35 per litre.
According to domestic trade and cost of living (KPDN) minister Datuk Armizan Mohd Ali, cases of diesel seizure are down by 87%, based on cases in the 20 days prior to June 10, and the 20 days after that.
He said that from May 20 to June 9, there were 65 cases of diesel smuggling involving 520,803 litres, whereas from June 10-30, statistics show that there were only 14 cases involving 68,457 litres of diesel. The number of individuals detained because of diesel smuggling fell from 40 to one in the same period.
So, they’re right – with the diesel price difference between Malaysia and our neighbours narrowing significantly since June 10, there’s much less reward for the risks involved. Not so worth the effort, so to speak. But they can always shift from diesel to petrol, you say.
They have. The Papar MP revealed that the number of RON 95 petrol smuggling cases have risen from 37 cases involving 17,064 litres (May 20 to June 9) to 46 cases involving 14,011 litres in the 20 days after June 10. Individuals arrested rose from 10 to 17 in the same period. But it’s a matter of time that blanket subsidy for RON 95 will be removed, whether the day is just around the corner or later this year.
The KPDN minister said that to clamp down on smuggling, his ministry will step up enforcement and monitoring of controlled goods via Ops Tiris 3.0 nationwide.
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