Malaysian authorities disrupt subsidized oil and diesel fraud

Authorities in Malaysia have uncovered two separate subsidy misappropriation schemes during the ‘Ops Tiris 4.0’ enforcement operations in Penang and Perak.

In Seberang Perai, Penang, a syndicate was caught using a tactic of mixing subsidized cooking oil with coloring agents. The syndicate would cut open subsidized oil packets and transfer the mixture into Intermediate Bulk Containers (IBC) to be sold as used cooking oil for RM3.50. Police seized 3,150 kilograms of subsidized oil, along with pumps, tanks, and a vehicle, with a total seizure value estimated at RM95,000. A 51-year-old man was detained.

In Perak, enforcement officers raided a fishing jetty in Hutan Melintang, uncovering the illegal diversion of subsidized diesel intended for fishermen. Investigators discovered 32,760 liters of diesel being delivered via a tanker that did not match the authorized documentation for the premises. Discrepancies were also found in sales records, where transactions were logged for nine boats, but physical inspections confirmed only four boats had actually collected fuel. The operation targeted the illegal resale of diesel to land vehicles.