31-07-2025
- Business
- New Straits Times
Targeted subsidy helps prevent RM40mil diesel loss to smuggling
KUALA LUMPUR: The government has prevented the loss of more than RM40 million in subsidised diesel to smuggling and misappropriation between 2023 and July this year, thanks to the implementation of the targeted diesel subsidy mechanism.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said enforcement data has shown a steady decline in such cases since the mechanism was introduced.
In 2023, 992 cases were reported with seizures amounting to RM18.04 million. This dropped to 655 cases in 2024, involving RM17.14 million in seized fuel.
Between Jan 1 and July 8 this year, 261 cases were recorded, with seizures valued at RM5.24 million.
He said diesel is a scheduled controlled item under the Control of Supplies Act 1961 and is subject to strict regulation.
"Various measures have been implemented by the ministry to combat smuggling and misappropriation.
"These include strengthening governance, maintaining continuous oversight of the sale and distribution of subsidised controlled items, and conducting joint enforcement operations with other agencies at the border, such as the police, the Customs Department, the Malaysian Maritime Enforcement Agency, and Road Transport Department.
"The government's targeted diesel subsidy mechanism has proven effective in addressing issues of misappropriation and smuggling, as evidenced by the declining number of recorded cases," he said.
