Will Sarawak face diesel smuggling after peninsula subsidy removal?

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Sarawak May Face Increased Diesel Smuggling Due to Subsidy Rationalisation

Sarawak could experience a significant increase in diesel smuggling activities following the removal of diesel subsidies in peninsular Malaysia. Bukit Assek assemblyman Joseph Chieng has expressed concern that this policy shift may create incentives for illicit cross-border trade, potentially impacting the supply and cost of diesel within the state. He is urging the Ministry of Domestic Trade and Cost of Living (KPDN) to proactively monitor diesel supply chains in Sarawak to prevent such issues.
Call for Enhanced KPDN Monitoring in Sarawak

Joseph Chieng has specifically called upon the KPDN, particularly its Sarawak branch, to maintain close oversight of the subsidised diesel supply. This heightened vigilance is deemed necessary to detect and deter any potential smuggling operations that might arise from the disparity in diesel pricing between the peninsula and Sarawak. Chieng indicated a desire for KPDN to share information on subsidised diesel levels to aid in monthly monitoring efforts.
Historical Trends Indicate Potential Shortages

Past observations have shown a pattern of long queues at service stations in Sarawak towards the end of the year, a period often associated with shortages of subsidised diesel. Chieng highlighted these historical trends as a cause for concern, suggesting that the current subsidy rationalisation could exacerbate existing supply pressures. He fears that without additional quotas from the federal government, these shortages could translate into increased transportation costs for various sectors.
Concerns Over Transportation Cost Increases

The potential for increased diesel smuggling and subsequent supply shortages raises significant worries about the impact on transportation costs. Chieng articulated his apprehension that the federal government might not allocate supplementary quotas to address any demand spikes or supply disruptions. Such a scenario could lead to a hike in the cost of goods and services across Sarawak, affecting both businesses and consumers.

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Will Sarawak face diesel smuggling after peninsula subsidy removal?

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