KOTA KINABALU: A comprehensive audit of Sabah’s diesel supply chain, particularly at petrol stations, is needed to curb subsidy leakages that could affect goods prices and the cost of living.
Consumers Front of Sabah (CFOS) President Nordin Thani said the audit should include a detailed review of petrol station sales records, including the volume of diesel sold and verification of transactions, to ensure supplies are directed to those eligible under the targeted subsidy scheme.
He said the audit would reveal any non-compliance, including sales to those outside the subsidy scheme, and that strict measures, including halting operations, should be enforced against offenders.
“Such measures are necessary to uphold the law and should be reinforced with stricter regulations and heavier penalties for those involved in misconduct, whether sellers or buyers,” he said.
On March 26, Prime Minister Datuk Seri Anwar Ibrahim announced that Sabah and Sarawak would continue to enjoy subsidised diesel at RM2.15 per litre.
Nordin said diesel subsidy leakages could have a ripple effect on the State’s economy, particularly in Sabah, which relies heavily on logistics for distributing essential goods.
He urged the Government to take a proactive approach by inspecting company inventories, invoices and sales records to detect any stockpiling of supplies.
“This is crucial to prevent situations like during the Covid-19 pandemic, when some parties hoarded stock to sell at inflated prices,” he said.
He added that the current global energy crisis could further drive up diesel costs, directly impacting logistics, raising goods prices, and burdening consumers, particularly in rural areas.
“Given global price volatility, its effects may be felt soon, making early mitigation measures by the Government essential,” he said, adding that diesel reserves should be increased and purchase limits introduced to prevent overbuying, which could lead to leakages.
Nordin also proposed specialised training for petrol station operators to help them identify diversion methods, including the use of modified vehicles.
He said surveys showed most petrol station staff cannot detect vehicles modified to siphon diesel, and enforcement needs strengthening through regular monitoring, coordinated operations, and collaboration with multiple agencies, including local authorities (PBT).
He emphasised the importance of extending enforcement to rural areas, which are reportedly less monitored, to close opportunities for price manipulation and diversion.
At the same time, Nordin said community involvement as the ‘eyes and ears’ of authorities should be encouraged, including reporting information and complaints directly.
He added that community leaders, from each area down to village heads, play a crucial role in tackling diesel diversion, as they are closest to local communities.
“Efforts to curb diesel leakages and stabilise goods prices require the cooperation of all parties, not just the authorities but also the public, including consumers,” he said.
