Smuggled Petrol Continues to Thrive in Southern Thailand
The High Demand for Subsidised Fuel
The sale of smuggled subsidised petrol and diesel from Malaysia continues to openly at roadside stalls along the streets of southern Thailand, thanks to the vast difference in prices in both countries. The high demand for illicit fuel, usually sold at between 28 baht (RM3.64) for a one-litre bottle and 250 baht for a nine-litre can at stalls in Sungai Golok, ensures great profit for those engaged in the smuggling and sale of subsidised fuel meant for Malaysians.
Sungai Golok Deputy Mayor’s Insights
Sungai Golok deputy mayor Aphichet Jeh-Ouma reported that more than 100 petty traders were engaged in selling smuggled fuel from Malaysia by the roadside around the Sungai Golok town to Yala town. "The Thai authorities frequently admonish these sellers of illegal fuel, but they are stubborn, claiming that they need to survive," he said. Aphichet added that the illicit fuel has ready buyers in Sungai Golok even though it is being sold at higher prices than in Malaysia, as it is still cheaper than the price of legal fuel in Thailand.
Trader’s Perspective
Trader Saleeha Abdullah, 56, pointed out that the price of RON95 petrol in Thailand, which currently exceeds RM5.36 a litre, spurs the high demand for smuggled petrol in Thailand. According to her, petrol sold in bottles by the roadside is mainly used by motorcyclists and sold at prices between 28 baht to 30 baht a litre. "All the bottles found at the roadside are of different brands. Their prices vary and always fluctuate according to the level of difficulty in obtaining supply," she said.
Other Traders’ Stories
Trader Mat Yi, 40, said he sold up to 100 litres of petrol, better known as benzene in Thailand, sent by a supplier from Rantau Panjang, Pasir Mas. "I myself am not sure how they obtain the fuel but I’m convinced all of it is smuggled from Malaysia," he said. "We know that selling petrol and diesel smuggled from Malaysia is wrong but many do so," he added.
Conclusion
The illegal trade in smuggled petrol and diesel continues to thrive in southern Thailand, driven by the significant price difference between Malaysian and Thai fuel prices. While the Thai authorities have taken steps to curb the trade, many traders remain undeterred, citing the need to survive. The situation highlights the need for a more effective solution to the fuel smuggling problem, ensuring that legitimate fuel suppliers in Malaysia can compete fairly in the Thai market.
FAQs
Q: Why is the demand for smuggled petrol and diesel so high in Thailand?
A: The high demand is driven by the significant price difference between Malaysian and Thai fuel prices, making smuggled fuel a cheaper option for many motorists.
Q: Who are the main buyers of smuggled fuel?
A: According to Sungai Golok deputy mayor Aphichet Jeh-Ouma, petrol sold in bottles by the roadside is mainly used by motorcyclists and sold at prices between 28 baht to 30 baht a litre.
Q: How does the Thai government respond to the illegal fuel trade?
A: The Thai authorities frequently admonish sellers of illegal fuel, but many traders remain undeterred, claiming they need to survive.