PUTRAJAYA, 22 May 2026 – The Enforcement Division of the Ministry of Domestic Trade and Cost of Living (KPDN) Putrajaya, in collaboration with the Royal Malaysia Police (PDRM) Bukit Aman Special Branch, has successfully dismantled a syndicate involved in the diversion of subsidised diesel in Bukit Mertajam, Penang.
The special operation carried out on 20 May 2026 at approximately 2:00 pm involved five (5) officers from the KPDN Putrajaya Raid Team and four (4) officers from PDRM Bukit Aman. The raid was conducted following public complaints and intelligence gathered prior to the operation.
According to the KPDN media statement, the syndicate’s modus operandi involved purchasing subsidised diesel using fleet cards belonging to other parties at petrol stations. The diesel was then transferred into Intermediate Bulk Container (IBC) tanks, transported to a storage premises, and subsequently sold to the industrial sector.
Further inspection at the premises revealed three (3) storage tanks connected by pipes, one of which contained approximately 35,000 litres of liquid suspected to be diesel. A lorry equipped with an IBC tank containing about 2,000 litres of diesel was in the process of transferring the liquid into the storage tank. Another lorry carrying an IBC tank with an estimated 6,000 litres of the same suspected diesel was also discovered.
The raiding team seized two (2) lorries, approximately 43,000 litres of diesel, storage tanks, hoses and pipes, IBC tanks, fleet cards of various brands, and mobile phones believed to have been used in the activity. The total value of the seized items is estimated at RM247,198.00.
Three (3) men in their 30s were detained to assist in the investigation.
The case is being investigated under Section 21(1) of the Supply Control Act 1961 [Act 122].
Penalties:
Individuals – First offence: fine not exceeding RM1,000,000 or imprisonment not exceeding three years, or both. Subsequent offence: fine up to RM3,000,000 or imprisonment up to five years, or both.
Companies / Corporate Bodies – First offence: fine not exceeding RM2,000,000. Subsequent offence: fine up to RM5,000,000.
Datuk Azman bin Adam, Director General of Enforcement, KPDN, stressed in the statement that the ministry will continue to strengthen integrated enforcement actions with other agencies to combat the diversion of controlled goods and subsidies, which harms public interest and causes leakage of national subsidies.
He also urged members of the public with information on such activities to lodge complaints through the following official channels:
- WhatsApp: 019-848 8000
- KPDN e-Complaint Portal: eaduan.kpdn.gov.my
- Call Centre: 1-800-886-800
- Smartphone App: Ez ADU KPDN
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