Govt to revoke diesel fleet card privileges for misuse, smuggling

IPOH: Fleet card holders may have their privileges revoked if they are found misusing them for diesel smuggling under the Subsidised Diesel Control System (SKDS).

Domestic Trade and Cost of Living Ministry enforcement deputy director general (Operations) Shamsul Nizam Khalil (pic) said diesel smuggling syndicates are now using fleet cards to exploit subsidies in Selangor and Penang.

"Action will be taken under the Control of Supplies Act 1961. If companies are found guilty of misusing fleet cards, their privileges will be cancelled,” he told a press conference here on Tuesday (Aug 20).

He explained that a vehicle’s maximum refuelling capacity is 250 litres, making it unlikely for the same vehicle to refuel multiple times in a single day. This reinforces the need for stringent monitoring to prevent abuse.

Shamsul Nizam also noted that companies using fleet cards benefit from significant subsidies and price differences, and his ministry is implementing strict measures to prevent the leakage of subsidised diesel.

He said Perak has now joined Kedah in enforcing a ban on repeated purchases of subsidised diesel and RON95 petrol at all 429 petrol stations in the state.

"Monitoring has revealed that smugglers have shifted to smuggling RON95 petrol. Consequently, we have issued a directive banning repeated purchases of RON95 at all petrol stations,” Shamsul Nizam said.

This directive, issued under Regulation 12A of the Supply Control Regulations 1974, prohibits the sale of diesel and RON95 petrol for repeated purchases on the same day to Malaysian and foreign-registered vehicles. The new rules are effective immediately.

From Jan 1 to Aug 18, the ministry conducted 28,387 inspections nationwide under Ops Tiris 3.0, resulting in 1,946 cases with a total seizure value of RM75.44mil and 478 arrests.

"Ops Tiris 3.0 has also seen the ministry place enforcement officers at the country’s border entry points in Perlis, Kedah, Perak and Kelantan, pending the establishment of the Single Border Agency (MCBA).

"This is part of our efforts to combat leakage and smuggling of controlled and subsidised goods,” Shamsul Nizam added.