Fewer foreign vehicles refuelling with diesel in Bukit Kayu Hitam near border after subsidy rationalisation

The volume of foreign vehicle traffic refuelling with diesel at petrol stations near Malaysian borders has significantly decreased since the implementation of the diesel fuel subsidy rationalisation for Peninsular Malaysia on June 10, Bernama has reported following its survey at several petrol stations near the Bukit Kayu Hitam immigration, customs, quarantine, and security (ICQS) complex.

The report cited several station operators and workers as saying that although the move ‘might reduce profits’ for these stations, they expressed relief as it would help curb smuggling and misappropriation.

Foreign vehicles refuelling at a petrol station in Changlun, about 8 km from the Bukit Kayu Hitam ICQS complex have significantly decreased in number since the price of diesel has increased through the subsidy rationalisation, according to Bernama.

“Only 20% of our diesel quota is sold to private or other commercial vehicles, including foreign vehicles, which are limited to purchasing only 20 litres per transaction. But now, there are very few foreign vehicles refuelling here. Previously, there were many foreign four-wheel-drive vehicles. Only passenger vehicles like vans still refuel with diesel here,” said station operator Mohamad Nekmat Ariffin.

He also observed a decrease in diesel fuel sales at his station with the price increase following the subsidy rationalisation, saying that it was due to logistics companies switching to other petrol stations, and some companies are delaying their operations while waiting to receive the diesel fuel subsidy through the Subsidised Diesel Control System (SKDS 2.0) fleet card system.

Meanwhile at a petrol station along the Bukit Kayu Hitam-Jitra highway, the volume of foreign vehicles refuelling with diesel has dropped by more than 50% since the increase of the price of diesel to RM3.35 per litre, according to petrol station staff member Muhammad Irfan Kamarulan.

Two grades of diesel are sold at this station – Euro 5 B7 and Euro 5 B10 – and while the station sold around 8,000 litres of B10 diesel daily, that volume has dropped to between 5,000 litres and 6,000 litres a day, he said. To curb misappropriation, the station’s management has capped diesel purchases for foreign vehicles to RM30, even though the permissible limit is 20 litres, Muhammad Irfan said.

“Sometimes, vehicles refuel with diesel up to three times a day. We can’t be sure if they are regular users or [are] involved in misappropriation, so we limit diesel purchases to RM30 per refuel for foreign vehicles. If the same vehicle returns, we reduce the purchase limit to RM20,” he continued.

Meanwhile, a petrol station in Napoh, 18 km from the border has seen a reduction in diesel sales of around 50% following the rationalisation. Where it sold 1,000 litres to 2,000 litres of diesel daily, the volume has dropped to “a few hundred litres a day”, but it is not an issue as this station mainly sells petrol, said station manager Brian Yuen, according to the Bernama report.

Last week, minister of domestic trade and cost of living Datuk Armizan Mohd Ali said that nearly 200,000 diesel vehicles have been approved for the Diesel Subsidy Control System (SKDS 2.0) as of Wednesday, June 12, though currently there are still 180,000 commercial vehicles that are yet to be registered under SKDS 2.0, KPDN deputy minister Fuziah Salleh said yesterday.

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