Diesel smugglers in Malaysia can be held under a controversial security law which allows for indefinite detention without trial, a report said today, as the government struggles with a nationwide diesel shortage.

"The provisions are there," to detain such smugglers under the Internal Security Act (ISA), Minister in the Prime Minister's Department Radzi Sheikh Ahmad was quoted as saying by the New Straits Times .

The act, originally designed to combat a communist rebellion half a century ago, allows for two year detention periods without trial, which can be renewed indefinitely.

However, Radzi added it was up to Domestic Trade and Consumer Affairs Minister Shafie Apdal to "make the suggestion."

Shafie had said on Saturday that the maximum punishment ought to be meted out to diesel smugglers as their activities had affected the country's economy, according to the daily.

He said it was obvious that existing punishments, including a maximum fine of RM25,000, did not deter smugglers.

Corrupt officials targeted

Corrupt officials and fuel smugglers have been targeted by the government as it struggles with the shortage which has crippled transport.

The government was also working on long-term plans to regulate the supply of the vital fuel after a crisis meeting last week.

Diesel in Malaysia is heavily subsidised at 88 sen a litre, tempting smugglers to sell it in neighbouring Thailand where it is more expensive, or pass it onto industrial users not entitled to the subsidy.

In an attempt to curb the smuggling, the government imposed a quota system for petrol stations which led to a crunch last week with school and commercial buses, trucks, taxis and even fishing vessel operators finding it difficult to get enough for their daily needs.

Pan Malaysian Lorry Owners' Association president Er Sui See said the crisis had forced about 30 percent of the group's 10,000 members, owning some 100,000 lorries and trailers, to temporarily halt operations.

Faced with a growing outcry, the government last week ordered the oil companies to begin distributing June's quotas and Shafie acknowledged Thursday there were weaknesses in the quota system.