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Limited diesel, petrol for the east coast from July
Published on: Sunday, June 29, 2014

Kota Kinabalu: Four guidelines have been drawn up to check the abuse of subsidised petrol and diesel nationwide.

Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK) Secretary-General Datuk Seri Alias Ahmad said, firstly, supply for each kiosk in the east coast of Sabah would be limited to 600,000 litres of fuel monthly from July 1.

"Each of the 72 stations will only get 600,000 litres of diesel and petrol monthly in the light of rampant smuggling," he told a press conference here, Saturday.

Alias said the stations must apply to the Sabah KPDNKK Director Severinus Tukah for additional supply.

Secondly, he said KPDNKK would decide the quota and approval of subsidised fuels for each petrol station, and not the oil and gas companies, from Aug 1.

"The second step is mandatory for all stations and they must submit a monthly sale report to the State KPDNKK for diesel and petrol RON 95," he said.

Thirdly, he said all tankers transporting subsidised fuels must be painted blue with the words "minyak subsidi" in large letters from Jan 1, 2015.

Fourthly, Alias said the Ministry had decided to impose a condition on applications for additional special quotas to flipcards which were used for school bus, express bus, mini bus, state bus, rented car, taxi and ambulance.

The Ministry would also review the need to implement Ops Titik based on a new mechanism, which was expected to be implemented in September.

Alias said the operation would be continued until Dec 31, while KPDNKK would review the need to carry out phase two based on the current situation.

He said phase two would involve a more active and tight enforcement to overcome leakages of subsidised diesel and petrol.

"We also find a 30 per cent improvement and the flow of the subsidised fuels is under control since the start of the operation two months ago, including no excess stock and inadequate fuels," he said.

Alias said Ops Titik, to combat abuse of diesel, had shown positive signs with 178 cases detected involving seizures of RM9 million since it was implemented on May 15.

He said the integrated operation which was carried out by a special task force together with the Attorney-General's Chambers also saw 170 accounts totalling RM50.68 million frozen by Bank Negara involving offences under the Anti Money Laundering and Anti-Terrorism Financing Act 2001.

In the meantime, Alias stressed that KPDNKK would not hesitate to blacklist for life any firm or petrol stations which flouted the rules, effective immediately.

He said KPDNKK would also freeze errant petrol stations until investigations were completed and decided by the court, adding, nine cases were under investigation and two kiosks in Kedah and Kelantan had been frozen.

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