MIRI: A licensed diesel storage facility here has come under investigation after police and trade enforcement officers uncovered what they believe is an illegal fuel diversion operation that bought diesel from heavy vehicle drivers and resold it to industrial customers for profit.
The operation was uncovered during a joint raid by officers from the Miri district police headquarters (IPD Miri) and the Ministry of Domestic Trade and Cost of Living (KPDN) at a premises in Senadin Enterprise Park Phase 9 on Sunday (Jun 21) morning.
Two local men, aged between 40 and 49, were detained at the site, where authorities alleged diesel was being collected, stored and redistributed through an unauthorised supply network.
Investigators believe the premises functioned as a collection centre, purchasing diesel from heavy vehicle drivers operating in and around Miri before transferring the fuel into storage tanks for resale to industrial players across the division.
A search of the premises uncovered approximately 5,250 litres of diesel, a tanker lorry with a capacity of 5,000 litres, a 10,000-litre skid tank and equipment believed to have been used in the operation.
The total value of the fuel, vehicles and equipment seized was estimated at RM94,787.50.
Authorities said the owner possessed a valid permit issued by KPDN authorising the purchase, use and storage of up to 10,000 litres of non-subsidised diesel.
However, investigators suspect the permit was being misused to facilitate an illegal fuel trading operation.
The case has been handed over to KPDN Miri for further investigation under Section 21(1) of the Control of Supplies Act 1961.
Miri police chief ACP Mohd Farhan Lee Abdullah said diesel diversion activities continue to inflict substantial losses on the government and undermine efforts to regulate the distribution of controlled fuel products.
He warned businesses and individuals against collaborating with syndicates involved in the illegal fuel trade and urged members of the public to provide information to enforcement agencies.
“The diversion of diesel for unauthorised commercial gain is a serious offence that impacts government revenue and compromises the integrity of the supply chain,” he said.
The raid marks the latest enforcement action against fuel diversion activities in northern Sarawak, where authorities remain on alert for syndicates seeking to exploit legitimate supply channels for illegal profit.
