Subsidised Malaysian petrol still widely sold in Thailand

SADAO: The sale of subsidised RON 95 petrol, believed to be smuggled from Malaysia, is still widespread in areas around the towns of Danok and Sadao, although it is said to be less rampant than before.

A Bernama survey along the 13-kilometre stretch from the border town of Danok to Sadao detected at least eight locations where the fuel was being sold on both sides of the road.

Most of the petrol was placed in 1.5-litre and 2-litre bottles, arranged on wooden racks in front of premises like food stalls and vehicle repair shops near the main road.

The fuel is sold for 30 baht (RM3.89) to 35 baht (RM4.53) per bottle, which is cheaper compared to the current price of petrol at Thai petrol stations, which stands at 35.45 baht (RM4.59) per litre. The cost of RON 95 petrol in Malaysia is only RM2,05 per litre.

According to a seller who declined to be identified, most sales locations for Malaysian petrol are around the outskirts of Danok towards Sadao, close to the Malaysian border.

The seller added that most of the petrol sold in bottles is purchased by motorcyclists, who have a higher demand compared to other vehicle owners.

"Previously, the demand for Malaysian diesel was higher than petrol, but after the price of diesel was floated in Malaysia, fewer sellers deal in diesel because the profit margin is now much smaller compared to before.

"There used to be many diesel sellers, but now most of them have stopped. Those still in business mostly sell petrol, and very few sell diesel,” said the man in his 30s, when met in Sadao on Wednesday (Oct 17).

Meanwhile, a grocery store worker in Danok, who also requested anonymity, said that while the number of vendors selling subsidised Malaysian petrol has decreased, the fuel is still readily available.

He said that most vendors only sell along the main road between Danok and Sadao and avoid selling in areas further from the border, like Hatyai, due to higher costs.

"Malaysian fuel is still being sold, but it’s not as abundant as before, especially diesel, since the price in Malaysia is almost the same as in Thailand now. However, petrol is still widely available,” said the 20-something worker.

In contrast, Mohamad Nekmat Ariffin, 41, an operator of a petrol station in Changlun, about eight kilometres from the Malaysia-Thailand border, said that no repeated purchases of subsidised petrol have been detected at his station recently.

He noted that this indicates smugglers are finding it more difficult to acquire the fuel for resale in Thailand.

"For petrol, refills in containers are allowed up to 20 litres for agricultural purposes. Repeated filling into vehicle tanks rarely happens now, and it’s usually easy to detect smuggling attempts because the same vehicles and drivers would show up,” he said.