The Penang office of the Ministry of Domestic Trade and Cost of Living (KPDN) dismantled a subsidised diesel misappropriation syndicate, recovering assets valued at RM327,963.80 during an overnight intervention at an unauthorised storage facility in Sungai Lokan, Butterworth. Director S. Jegan confirmed that targeted intelligence operations spanning one month culminated in an 8.30 pm site raid.
“During the raid, an 18,000-litre tanker was transferring diesel into a 23,000-litre tanker. Further inspection revealed that the premises failed to produce the necessary documents, licences, or permits to possess and manage scheduled controlled goods.”
“The syndicate’s modus operandi involved using the 18,000-litre tanker as a mobile storage unit, collecting diesel from several smaller lorries that purchased fuel in limited quantities from petrol stations statewide,” he told a press conference here today.
Enforcement units secured the commercial tankers, transfer apparatus including hoses and pumps, corporate documentation, and exactly 21,190 litres of diesel. Analytical data indicates the network executed incremental stock accumulation, prioritising Wednesday retail acquisitions ahead of scheduled pricing revisions.
The consolidated fuel was subsequently transferred to secondary tankers for suspected distribution outside Penang, targeting industrial consumers at rates beneath standard commercial valuations. Two Myanmar men in their 20s, who were working at the illegal storage facility, were also detained during the raid.
Ongoing forensic and administrative investigations aim to identify syndicate leadership and map the broader operational network. Concurrent enforcement activity in Lahad Datu resulted in two arrests and the seizure of 1,000 litres of diesel alongside two four-wheel-drive vehicles, yielding a combined valuation of approximately RM117,150.
Lahad Datu KPDN Enforcement chief Azizul Amran confirmed the intervention was executed under the Ops Tiris 4.0 mandate at a district retail outlet. The midnight deployment utilised four personnel to conduct regulatory verification.
“During the inspection, enforcement officers found two local men in their 20s filling diesel into drums loaded onto two four-wheel-drive vehicles. Both suspects failed to produce any documents or permits authorising the diesel purchase,” he said in a statement.
A subsequent joint compliance audit of multiple petrol stations in Beaufort, coordinated by ministry officers and law enforcement, recorded zero regulatory infractions.
