KPDN bans repeat purchases of RON95 petrol in Kelantan, warns against colluding with smugglers

The ministry of domestic trade and cost of living (KPDN) has banned repeat purchases of RON 95 petrol at all Kelantan petrol stations in a bid to prevent smuggling of the subsidised fuel to neighbouring countries, Berita Harian has reported.

The directive was issued after the practice of repeatedly purchasing the fuel was discovered as a means of stockpiling before the fuel is smuggled to Thailand, said KPDN deputy director of enforcement operations Shamsul Nizam Khalil.

While the order is limited to the state of Kelantan for now, it will be expanded to other border states such as Perlis, Kedah and Perak, said Shamsul Nizam.

“In fact, the order has been carried out from June 10 before the federal government began targeted fuel subsidies, with KPDN officers positioned around customs, immigration and quarantine (CIQ) complexes and petrol stations in the state, he said.

KPDN bans repeat purchases of RON95 petrol in Kelantan, warns against colluding with smugglers

Tactics used by fuel smuggling syndicates typically employ vehicles with local license plates for topping up with RON 95 petrol, where a 60 litre capacity could normally enable the vehicle to travel between 500 km to 600 km, however the same vehicle is found refuelling once again between covering that distance, thus raising suspicion that the fuel is being smuggled into a neighbouring country, he added.

Fuel smuggling practices could actually be detected with the cooperation of fuel station operators to ensure that no fraud is taking place on their premises, Shamsul Nizam said.

“If the fuel smugglers are caught, action can be taken against petrol station operators for allowing RON 95 petrol to be repeatedly purchased, and the KPDN has warned all petrol station operators that their licenses may be cancelled if they are found to be colluding with smugglers,” the KPDN deputy director of enforcement operations added.

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