KOTA KINABALU: The Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK) will be implementing four new measures as part of its efforts to curb smuggling of subsidized diesel nationwide.
Its secretary-general Datuk Seri Alias Ahmad when speaking to reporters here yesterday said one of the measures involved the 72 fuel stations in Sabah’s east coast.
Alias disclosed that in light of rampant smuggling, diesel supply for each kiosk in the east coast of Sabah would be limited to 600,000 litres a month beginning July 1.
However, kiosks can apply for more if and when the need arises, he said adding that all applications must be sent to the Sabah ministry director Severinus Tukah.
“Our intention is not to cause problems for the industry but to prevent smuggling of subsidized diesel. By applying directly to the director, we will be able to carry out our enforcement in preventing smuggling of subsidized fuel,” he stressed.
The state ministry, he said would decide the quota and approval of subsidised diesel for each petrol station from Aug 1, and not the oil and gas companies as the ministry found this to be more effective especially in carrying out its enforcement.
According to Alias, the state ministry also required all stations to submit a monthly sales report of diesel and petrol RON 95 sold.
Thirdly, he said all tankers transporting subsidised fuel must be painted blue with the words ‘minyak subsidi’ in large letters from Jan 1, 2015. This again will make monitoring and enforcement easier for the ministry, he said.
Fourthly, Alias said the ministry had decided to impose a condition on applications for additional special quotas to fleet cards which were used for public transportation such as school bus, express bus, mini bus, e bus, rented car, taxi and ambulance.
“Take for example buses, when their quota for subsidized diesel which they purchase at RM1.68 per litre is used up, they are allowed to purchase diesel at RM2 per liter which is also a subsidized price.
However they do not have a limit as to how many litres they can purchase and this has led to abuse where there have been cases of the diesel being sold to others, he said.
“So now all public transportation will be given a quota based on their needs after their initial quota is used up,” he said.
Alias also disclosed that the ministry will review the need to implement Ops Titik based on a new mechanism, which was expected to be implemented in September.
Ops Titik, he added would be continued until Dec 31 while the ministry would review the need to carry out phase two based on the current situation.
He said phase two would involve a more active and tight enforcement to overcome leakages of subsidised diesel and petrol.
“We also found a 30 per cent improvement and the flow of subsidised fuel has been under control since the start of the operation two months ago including no excess stock and inadequate fuels,” he told a media conference here, yesterday.
Alias said Ops Titik, to combat abuse of diesel, had shown positive signs with 178 cases detected involving seizures of RM9 million since it was implemented on May 15. He said the integrated operation which was carried out by a special task force together with the Attorney-General’s Chambers also saw 170 accounts totalling RM50.68 million frozen by Bank Negara involving offences under the Anti Money Laundering and Anti-Terrorism Financing Act 2001.
In the meantime, Alias stressed that the ministry would not hesitate to blacklist for life any firm or petrol stations which flouted the rules, effective immediately.
He said the ministry would also freeze errant petrol stations until investigations were completed and decided by the court, adding, nine cases were under investigation and two kiosks in Kedah and Kelantan had been frozen.