Fake Fuel Tanks, Fleet Card Abuse Among Tactics In Subsidised Diesel Syndicate - Azman

PUTRAJAYA, April 24 (Bernama) -- The use of modified vehicles fitted with hidden fuel tanks and the abuse of fleet card facilities have been identified as among the main tactics employed by syndicates involved in the embezzlement of subsidised diesel.

Ministry of Domestic Trade and Cost of Living (KPDN)  Director-General (enforcement) Datuk Azman Adam said syndicates have adopted increasingly sophisticated methods, including installing additional fuel tanks concealed beneath seats, inside bonnets and underneath vehicles without regulatory approval.

He said some smaller vehicles had even been modified with tanks far exceeding their original fuel capacity to enable the purchase of larger quantities of subsidised diesel.

“One tactic involves creating two fuel inlets. At first glance, it appears that fuel is being pumped into the standard tank, but it is actually diverted into a hidden auxiliary tank,” he said at a press conference today on the achievements of Ops Tiris from 2025 to March 2026.

Azman said diesel-related offences remained the most prevalent, with 166 cases recorded in just one month under Ops Tiris 4.0, which began on March 16. This was followed by offences involving petrol and liquefied petroleum gas (LPG).

Other methods uncovered include the use of covered vehicles to conceal storage tanks, as well as repeated fuel purchases before the subsidised diesel is collected and resold to industrial users or smuggling networks.

He said abuse of fleet cards has emerged as a growing trend, with certain parties exploiting the subsidy mechanism to purchase diesel at subsidised rates before reselling it to industries at significantly higher prices.

The substantial price gap between the subsidised fleet card rate of around RM2.15 per litre and the industrial market price of RM7 to RM8 per litre has been a key driver of the illegal activity.

Investigations indicate that those involved may include drivers, companies, or both, depending on the findings of each case.

He cited a recent case in Johor where KPDN seized eight fleet cards believed to have been used to obtain subsidised diesel for resale to industrial buyers.

“The fleet card facility was introduced to help reduce operating costs in the transport sector, but some parties have abused it for profit,” he said.

Meanwhile, Azman said KPDN has activated a seven-day-a-week war room to coordinate enforcement operations in border areas involving six key controlled commodities, namely diesel, petrol, LPG, flour, sugar and cooking oil.

To date, the ministry has received 46 public complaints related to these commodities, with public information continuing to play a vital role in enforcement efforts against smuggling and subsidy leakages.

In another development, Azman said the 54th KPDN Enforcement Day celebration, themed “Committed to Meeting Challenges”, will be held in Cyberjaya on April 28.

He said the event aims to recognise the contributions of the KPDN Enforcement Division in combating subsidy leakages, preventing the misappropriation of controlled goods, and safeguarding consumer interests.

With approximately 2,400 enforcement officers nationwide, KPDN remains committed to strengthening monitoring and enforcement to ensure adequate supply, price stability and continued consumer protection.

-- BERNAMA