MIRI: Enforcement officers in Miri have uncovered a suspected diesel diversion operation involving a modified private vehicle, in a case that highlights ongoing leakages in Malaysia’s subsidised fuel system.
The raid, carried out on Apr 28 by the enforcement division of the Ministry of Domestic Trade and Cost of Living (KPDN) here, targeted a vehicle flagged during routine surveillance.
An initial inspection led officers to a concealed canvas tank believed to have been deliberately altered to store fuel outside regulated channels. A subsequent search uncovered around 300 litres of diesel inside the tank.
While the seized fuel itself was valued at approximately RM645, officials said the broader confiscation, including the vehicle and associated equipment, brought the total estimated value to more than RM100,000.
The vehicle has been impounded and its owner is under investigation.
The case is being pursued under Section 20(1) of the Control of Supplies Act 1961, read together with Section 21 of the same law, which governs the handling and distribution of controlled goods, including subsidised fuel.
Authorities say such operations are part of a wider enforcement push to curb the illegal diversion of diesel, a commodity particularly vulnerable to abuse due to price controls and sustained demand from transport and industrial sectors.
Under Malaysian law, individuals convicted of misusing controlled goods face fines of up to RM1 million, imprisonment of up to three years, or both.
Repeat offenders may be subject to fines of up to RM3 million and jail terms of up to five years.
Companies found guilty can be fined up to RM2 million, rising to RM5 million for subsequent offences.
KPDN officials said monitoring efforts have been intensified at petrol stations and along key distribution points.
Selling fuel into containers other than a vehicle’s original tank, in quantities exceeding 20 litres without a valid permit, is an offence under the law.
The ministry has also called for greater public cooperation, urging consumers to report suspicious activity through its hotline, online portal and mobile application.
Officials said public tip-offs remain a critical component in identifying and disrupting illegal fuel movements, particularly in areas where enforcement visibility is limited.
Investigations are ongoing.
