MIRI: Authorities here have uncovered what they believed to be a small-scale fuel diversion operation following a targeted enforcement raid on a suspicious private vehicle.
Officers from the Ministry of Domestic Trade and Cost of Living (KPDN) enforcement division moved in after observing unusual refuelling activity involving controlled goods, specifically subsidised diesel.
The operation forms part of a broader crackdown on leakages in Malaysia’s fuel subsidy system, which continues to face pressure from illicit resale and cross-border smuggling.
According to enforcement officials, the vehicle drew attention while refuelling at a petrol station under circumstances deemed inconsistent with normal consumer behaviour.
A subsequent inspection revealed a concealed storage set-up inside the vehicle, including a tank believed to have been modified to hold additional quantities of diesel beyond standard capacity.
Investigators suspect the modification was intended to facilitate the accumulation and potential diversion of subsidised fuel, a controlled commodity under Malaysian law. The vehicle has since been seized to assist ongoing investigations.
Legal action has been initiated under Section 20(1) of the Control of Supplies Act 1961, read together with Section 21 of the same legislation. These provisions address offences related to the misuse, storage, and distribution of controlled goods without proper authorisation.
If convicted, individuals face substantial penalties. First-time offenders may be fined up to RM1 million, imprisoned for up to three years, or both.
Repeat offences carry heavier sanctions, including fines of up to RM3 million and prison terms of up to five years. Corporate entities, if implicated, may face fines reaching RM2 million for initial offences and up to RM5 million for subsequent violations.
Miri KPDN officials say surveillance and compliance checks will be intensified, particularly at petrol stations identified as high-risk nodes for irregular fuel transactions.
The ministry reiterated that the sale or transfer of fuel into containers exceeding 20 litres without a valid permit constitutes an offence under existing regulations.
The enforcement division is also seeking public cooperation to strengthen intelligence gathering. Multiple reporting channels remain open, including a dedicated hotline, digital complaint portal, and mobile application designed to streamline tip-offs from consumers and industry players.
Investigations into the case are ongoing.
