PETALING JAYA: The government is considering casting a massive dragnet over border-town fuel stations by enforcing mandatory audits on all fuel retailers located within a 50km radius of the national border.
The proposed move is part of a strategic policy shift being weighed by the Domestic Trade and Cost of Living Ministry (KPDN) to choke the supply lines of cross-border fuel smuggling syndicates.
Deputy KPDN Minister Datuk Dr Fuziah Salleh (pic) told The Star that the government is currently reviewing existing policies to further restrict fuel purchases in high-risk zones, acknowledging that current limits have not completely stopped the leakages.
“While fuel purchase limits in border areas are already in place, further tightening measures are being considered.
“These include stricter fleet card compliance systems and rigorous audits of all petrol stations within a 50km radius of the border,” she said.
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The proposed audits are part of a broader escalation under Ops Tiris 4.0, which kicked into high gear on March 16.
If implemented, the 50km audit zone would encompass hundreds of fuel stations across northern peninsula states like Kelantan, Perlis and Kedah, as well as border towns in Sabah and Sarawak.
Based on KPDN’s statistics as of 4Q last year, 817 petrol stations are operating across the four northern and east coast border states in the peninsula.
This consists of 372 stations in Kedah, Kelantan (232), Terengganu (174), and Perlis (39).
A significant portion of these stations fall directly within the proposed high-risk 50km audit radius.
In Sabah, there are 268 petrol stations, and Sarawak has 280 active stations, while Johor has 648 fuel stations.
The Cabinet had recently approved a proposal for police officers to be deployed at petrol stations near border areas to strengthen enforcement against fuel leakages and smuggling.
Fuziah warned that the ministry will continue to show “zero tolerance” toward any petrol station operator found colluding with syndicates.
“Such actions not only violate the law but constitute a betrayal of Malaysians by misappropriating fuel subsidies worth billions of ringgit intended for eligible citizens,” she said.
Fuziah said that KPDN is no longer satisfied with merely seizing smuggled diesel and arresting low-level drivers.
She said her ministry is now actively going after the syndicate masterminds by invoking the Anti-Money Laundering Act (AMLA).
“Our focus extends beyond fuel seizures. Efforts are now directed at dismantling syndicate networks at their core, including freezing assets and tracking financial flows under AMLA.
“This prevents syndicates from re-emerging under different identities,” she said.
Smugglers have continuously evolved their tactics, frequently using vehicles fitted with illegally modified, oversized fuel tanks.
These “ghost vehicles” make multiple trips a day to border town petrol stations to stockpile subsidised fuel before slipping across the border.
To counter this, Fuziah added that the ministry has deployed static enforcement officers and mobile patrols to monitor high-risk stations.
She also said her ministry is integrating CCTV feeds and digital tracking systems to flag vehicles making abnormal or excessive fuel purchases.
“The overarching goal is to transition towards a more effective targeted subsidy system, ensuring that government allocations reach those who genuinely qualify while closing all avenues for leakages,” Fuziah said.
Calling local communities the nation’s “first line of defence”, she urged residents in border towns to report suspicious activities and refuse to let syndicates operate in their backyards.
The public can report smuggling activities via WhatsApp at 019-848 8000, the e-Aduan portal (eaduan.kpdn.gov.my), the Ez ADU KPDN app, or the 1-800-886-800 hotline.
