Wednesday, February 19, 2014

OIL BUNKER SMUGGLING EXPOSED - TASK FORCE RED ALERT!


Last year in February, NST reported that our Government have seized the smuggling of RM252 million ($81.5 million) worth stolen fuel that was attempted to be sold to bunker operators in waters off Pengerang in Kota Tinggi. The suspects attempted to sell to bunker operators in Johor, Singapore and Batam in Indonesia after a report was lodged by an oil company that 70,000 metric tonnes of fuel were stolen.

Earlier, The Malaysian Maritime Enforcement Agency (MMEA) detained four ships over alleged illegal fuel transfers amounting to 123,740 litres of diesel and the following day another ship was caught transferring 50,000 litres of marine fuel oil (MFO) and 30,000 litres of marine gas oil (MGO) Teluk Ramunia.

Middle last year what was considered as the biggest bust, and again our Government have foiled a plot that involved smuggling 5,600 litres of diesel worth more than RM3 million ($939,000) from a smuggling ring selling subsidised diesel to vessels travelling on international waters off Pengerang too.

All these are subsidised oil by the Government and a great forgone to country's revenue. Why and how it happened?

When demands are lucrative to sustain these international ships in high volumes that offers big quantity with handsome margin, this attracts bunkering smuggling. What contributed most is the existence of illegal ports that are not registered with respectives agencies such as Marine Department.

Due to difference in price in neighbouring countries and weak enforcement, it facilitates smuggling activities. For instance, in Thailand diesel price is RM3.00 - RM3.50 per liter whereas RON95 is almost RM4.50 - RM5.00. This does not include other items such as LPG whereby in Malaysia, selling price is at RM1.80 - RM2.00 as compared to Thailand is at RM2.50 - RM3.00

Such activities are popular in Northern and Eastern Peninsula namely in Padang Besar and Wang Kelian, Perlis; Durian Burung and Bukit Kayu Hitam, Kedah; Bentong, Perak; and Golok, Kelantan. Whereas at Singapore border, stern enforcement actions are imposed.

Prevention is better than cure, so they said. Therefore government imposed certain measures such as to set a quota on every diesel purchased at a certain period of RM200.00.

Somehow, this will not hinder these syndicates from returning again and again to fill their additional tanks in modified vehicles.

Which ministry is responsible?

It involves enforcement such as The Ministry of Domestic Trade, Co-Operatives and Consumerism. Its Enforcement Division should monitor from the ground and combat the abused controlled  syndicate tankers operate during their favorite hours that is in the middle of the night. Collections from each and every gas stations and especially illegal gas stations spread trhough Malaysia-Thailand border need to be given a priority too.

An anti-smuggling task force comprises of a joint venture of forces should also be included for better engagement and coordination in combating such abused of controlled subsidised items.

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