Malaysia

Ministry to crackdown, intensify fuel smuggling enforcement amid global oil price surge

KPDN will step up enforcement to curb fuel smuggling as global oil prices soar, creating a wider price gap with neighbouring countries

Updated 5 months ago · Published on 10 Mar 2026 12:59PM

Ministry to crackdown, intensify fuel smuggling enforcement amid global oil price surge
Authorities reassure the public that domestic supplies remain sufficient for the festive season (File pic) - March 10, 2026

IN response to rising global oil prices triggered by conflict in the Middle East, Malaysia’s Ministry of Domestic Trade and Cost of Living (KPDN) announced plans to strengthen enforcement against fuel smuggling, warning that cross-border price differences could incentivise illegal activity.

Minister Datuk Armizan Mohd Ali stated that while the government has implemented phased diesel and RON95 subsidy targeting, “the risk of smuggling still exists when global market prices rise.”

He explained that neighbouring countries do not provide subsidies like Malaysia, increasing the potential for fuel diversion.

“So there is a significant risk of smuggling and subsidy leakage, and the authorities will enhance enforcement,” he said at a press conference on the Aidilfitri Maximum Price Scheme (SHMMP) and the Aidilfitri MADANI Fair Sales Program (PJRM) at Tasek Tambahan Recreational Park in Ampang on Tuesday.

KPDN enforcement director Datuk Azman Adam was also present.

Armizan added that Operation Tiris will be activated to monitor and prevent fuel being illicitly diverted to neighbouring countries.

“We are concerned about domestic misuse due to the price disparity. We are taking immediate steps to monitor supply and enforce regulations.

“Most importantly, during the short-term festive period, buyers should not panic; supplies are sufficient,” he said.

In addition to enforcement measures, Armizan highlighted the government’s consumer assistance initiatives for Aidilfitri.

These include the PJRM Aidilfitri, which now covers a minimum of 50 subsidised items, up from 40, as announced by Prime Minister Datuk Seri Anwar Ibrahim on March 9.

“Members of the public can check the PJRM Aidilfitri 2026 schedule on the KPDN website at [www.pjrm.kpdn.gov.my](http://www.pjrm.kpdn.gov.my) or via the Info Jualan RAHMAH MADANI mobile app,” he said.

The ministry is also implementing the MADANI Vehicle Service Program (SIM@PAX) in collaboration with Petronas AutoExpert.

“Through the ‘SETEL’ app, motorists can book discounted car services, including lubricants, at 124 participating workshops nationwide, receiving 10 to 30 per cent off current market prices from now until March 17, and again from March 23 to 31,” Armizan added.

The ministry’s combined strategy of enforcement and public support aims to safeguard domestic fuel availability while mitigating the risks posed by surging international oil prices during the Aidilfitri period. - March 10, 2026

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