Malaysian under investigation after Songkhla officials found 100,000 litres of diesel in underground tanks

Recently, Songkhla authorities said they are investigating a Malaysian logistics firm after 100,000 litres of diesel were found hidden in underground tanks in Sadao. Governor Rattasat Chidchu ordered a joint raid involving energy officials, police, customs, and excise officers.

Thai investigators suspect that the fuel was smuggled from Malaysia, stockpiled, and resold at higher prices in Thailand. They believe this scheme exploits the price gap between Malaysia’s subsidised fuel and Thailand’s market rates, pointing to deliberate profiteering.

Social media users voiced their concerns as subsidised fuel remains a hot issue. Netizens are debating how in Malaysia, locals risk jail for using another person’s identity card to refuel using subsidised fuel. They are also arguing about the uncovering of the large‑scale diesel stockpiling in Songkhla that had gone undetected until now.

Malaysian X users are demanding that the identities of those linked to this case be revealed. Many have branded the act as traitorous, with calls to boycott any companies connected to the individuals gaining traction online.

There are debates on the matter, with some users insisting nothing illegal was done. Others argue that the presence of underground fuel tanks points to a planned scheme, making the situation appear highly suspicious and deliberate.

Others claim that this might be a stockpile for personal usage, which might seem odd and could still be illegal. Some users asked how such a large amount was able to be smuggled out of the country without anyone noticing it. 

Regardless, this case exposes regional fuel price disparities, where profit‑driven smuggling undermines compliance, erodes trust, and distorts fair competition. It’s unclear if the Malaysian government is going to press on this matter further alongside the Thai authorities.

Currently, prices for diesel in most of Malaysia aren’t subsidised. Sabah, Sarawak, and Labuan are the only states to receive said subsidy for Diesel at RM2.15/litre (S$0.69). For the rest of the country, it is priced at RM6.02/litre (S$1.93).