Cheaper petrol and diesel prices, compared to its neighbours, is the main cause for the lucrative smuggling of the commodity out of Malaysia, the Dewan Rakyat was informed today.    

Even if the government abolishes the subsidy, fuel prices here are still low, said Domestic Trade, Cooperatives and Consumerism Deputy Minister Rohani Abdul Karim.    

“Subsidised petrol price here is RM1.90 per litre, while in Thailand it’s RM4.85, whereas diesel is RM1.80 per litre compared to RM3 across the border.   

“Let’s say we abolish the subsidy, unsubsidised RON95 will be RM2.72 per litre and diesel RM2.75. This is still cheap,” she said in response to a question from Ismail Kasim (BN-Arau).   

Ismail had asked about the ability of the ministry’s enforcement officers in handling the smuggling of subsidised items such as diesel and petrol.

Rohani said the ministry was working with the Royal Customs, Armed Forces, Malaysia Maritime Enforcement Agency and Road Transport Department on the matter.  

As of Oct 31, almost RM5 million worth of petrol and diesel were seized in 601 cases at the border, compared to RM3 million last year, she added.  

- Bernama