KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry identified 332 cases of subsidised fuel malpractice at the Thai and Singapore borders last year and arrested 191 individuals, including foreigners, in connection with the offence, said its director-general Datuk Azman Adam.
He told theSun the number was an increase from 2021, when 116 such cases were identified and 44 individuals arrested, while in 2022, 220 similar cases were identified and 88 held.
Azman added that last year, 3,599 inspections were carried out at petrol stations at Thai and Singapore borders to ensure they complied with the regulations governing subsidised fuel.
“During these inspections, we acted against 21 petrol stations that allowed the malpractice to happen. This is an increase from the eight cases we acted against in 2022.”
Azman said in addition to enforcement action, the ministry holds regular engagement sessions with oil companies and petrol station operators.
He said the discussions were held to provide them with guidelines on how to curb the misuse of subsidised fuel.
“We also conduct advocacy sessions that serve to explain the related laws and regulations under the Supply Control Act 1961.”
Azman said the ministry is planning to develop a centralised monitoring network through closed-circuit televisions installed at each petrol station.
“This will help to immediately detect foreign vehicles that fill up with subsidised fuel. We are also developing another mechanism for petrol station operators to immediately inform the ministry when such malpractices are detected.”
He said in addition to these measures, the ministry is using social media platforms to actively engage with the public and keep them informed of its actions.
Azman added that the ministry is looking at updating the Control of Supplies Act 1961, which provides for the control and rationing of supplies, to address current malpractices and prevent the illegal filling of subsidised fuel.
He said for now, anyone found committing an offence under the Act may be fined up to RM1 million for the first offence while for subsequent offences, the penalty may be raised to RM3 million or imprisonment not exceeding three years, or both.
“The stiff fine is designed to be a deterrent for the public not to get caught up in such activities. The highest fine meted out on an individual by the court so far was RM600,000.
“Similarly, upon conviction, oil and gas companies may face fines not exceeding RM2 million for the first offence, while subsequent ones could result in fines of up to RM5 million each.”
Azman said investigations on such companies are conducted under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).
“This Act involves addressing offences related to money laundering to detect, freeze, confiscate and, where necessary, disenfranchise any income or property derived from illegal activities related to malpractices involving diesel, petrol or controlled goods.
“Those found guilty under Act 613 face a maximum imprisonment of 15 years and a fine of not less than five times the amount or value of the proceeds of the illegal activity or the equipment used in the offence at the time it was committed, or RM5 million, whichever is higher.”