Decrease in diesel cases after subsidy rationalisation

4 July 2024

PUTRAJAYA: The Ministry of Domestic Trade and Consumer Affairs (KPDN) continues to intensify enforcement actions against activities involving the misuse and smuggling of controlled and subsidized goods, especially diesel and RON95 petrol throughout the country following the diesel subsidy rationalization in Peninsular Malaysia starting from June 10, 2024.

According to a statement issued by Datuk Armizan Mohd Ali, the Minister of Domestic Trade and Consumer Affairs, based on a comparison for the period 20 days before and after the implementation of the diesel subsidy rationalization, the number of cases involving diesel misuse has shown a significant decrease.

From May 20, 2024, to June 9, 2024, a total of 65 cases with a seizure of 520,803 liters of diesel were recorded. However, from June 10, 2024, to June 30, 2024, which is 20 days after the subsidy rationalization was implemented, statistics show a drastic decrease with only 14 cases recorded nationwide involving a total seizure of 68,457 liters of diesel.

This comparison indicates an 87% decrease in diesel seizures after the implementation of the diesel subsidy rationalization. The number of individuals detained in connection with diesel cases also decreased from 40 to just one during the same period.

However, there has been an increase in cases involving the seizure of RON95 petrol, with 37 cases and a seizure of 17,064 liters from May 20, 2024, to June 9, 2024, compared to 46 cases and a seizure of 14,011 liters after the diesel subsidy rationalization.

The number of arrests has also increased from 10 to 17 individuals during the same period. KPDN will continue to enhance enforcement actions and monitoring of activities involving the misuse of controlled goods under OPS TIRIS 3.0 nationwide in close cooperation with other enforcement agencies to ensure comprehensive and effective management of wastage issues.