Smuggled Subsidized Petrol Sales Persist Near Thailand-Malaysia Border

by Yuki

The sale of subsidized RON 95 petrol, smuggled from Malaysia, remains prevalent in the vicinity of Danok and Sadao towns. However, recent observations suggest that the extent of this activity has decreased compared to previous levels.

A survey conducted by Bernama along a 13-kilometre stretch from the border town of Danok to Sadao identified at least eight locations where the fuel was being sold on both sides of the road. The petrol is typically sold in 1.5-litre and 2-litre bottles, displayed on wooden racks outside various establishments, including food stalls and vehicle repair shops, located near the main thoroughfare.

The price for these bottles ranges from 30 baht (approximately RM3.89) to 35 baht (around RM4.53), which is notably lower than the current petrol price at Thai petrol stations, standing at 35.45 baht (RM44.59) per litre. In Malaysia, the cost of RON 95 petrol is only RM2.05 per litre.

According to an anonymous seller, most sales of Malaysian petrol occur in the outskirts of Danok heading towards Sadao, close to the border. This seller noted that the majority of customers are motorcyclists, who show a higher demand for petrol compared to owners of other vehicles.

“Previously, the demand for Malaysian diesel was higher than for petrol, but after diesel prices were floated in Malaysia, fewer sellers are dealing in diesel due to reduced profit margins,” explained the seller, a man in his 30s. “Many diesel vendors have ceased operations, while those who remain primarily sell petrol, with very few still selling diesel.”

In contrast, a grocery store worker in Danok, also wishing to remain anonymous, confirmed that while the number of vendors selling subsidized Malaysian petrol has decreased, the fuel is still readily available. He mentioned that most vendors restrict their sales to the main road between Danok and Sadao and tend to avoid areas farther from the border, such as 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 now nearly equal to that in Thailand. However, petrol remains widely available,” the 20-something worker stated.

Meanwhile, Mohamad Nekmat Ariffin, a 41-year-old petrol station operator in Changlun, located about eight kilometres from the Malaysia-Thailand border, reported that there have been no repeated purchases of subsidized petrol at his station recently. He indicated that this trend suggests smugglers are facing increased difficulty in sourcing fuel for resale in Thailand.

“For petrol, refills in containers are permitted up to 20 litres for agricultural purposes. However, repeated fillings into vehicle tanks have become rare, making it easier to detect smuggling attempts, as the same vehicles and drivers tend to appear,” he noted.

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