Malaysia plans CCTV at border fuel stations to tame smuggling
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Malaysia plans CCTV at border fuel stations to tame smuggling

Even with subsidies removed, fuel in Malaysia is still cheaper than in Thailand

Plainclothes police search a pickup truck to crack down on contraband fuel in an operation in tambon Thung Lung in Hat Yai district of Songkhla on April 20, 2023. The tambon is not far from the border with Malaysia. (Photo: Royal Thai Police)
Plainclothes police search a pickup truck to crack down on contraband fuel in an operation in tambon Thung Lung in Hat Yai district of Songkhla on April 20, 2023. The tambon is not far from the border with Malaysia. (Photo: Royal Thai Police)

Malaysian authorities are considering putting their own closed-circuit TV cameras at some petrol stations in a state bordering Thailand to deter them from selling cheap fuel to smugglers.

The Kelantan branch of the Malaysian Ministry of Domestic Trade and Cost of Living (KPDN) said it was in talks with oil companies to install CCTV at some stations in border districts in Kelantan state suspected of selling fuel to frequent purchasers, according to Bernama.

KPDN director Azman Ismail told the Malaysian news agency that authorities had identified 46 petrol stations that are favourites with smugglers.

Authorities want to keep a closer watch on people making unusual amounts of repeat purchases as they are probably smuggling the fuel to sell in Thailand. Kelantan and Narathiwat province in Thailand are separated by the Kolok River with a bridge in Sungai Kolok district linking the two countries.

Petrol stations have their own CCTV systems but authorities have to go to each site whenever they want to make checks. If the state ministry installs its own units, its staff can monitor activity from a central office, allowing authorities to take prompt action.

The Malaysian government ended its diesel subsidy on June 10, and an end to subsidies on RON95 petrol are said to be in pipeline.

Even with the subsidy removed, diesel in Malaysia is still significantly cheaper than in Thailand, Indonesia and Singapore, attracting steady interest from smugglers.

Malaysian law bans petrol stations from selling RON95 petrol to all vehicles bearing foreign registration plates. Station owners violating the directive could be fined up to 1 million ringgit (7.7 million baht) and/or imprisoned for up to three years.

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