According to reports from Indonesia, the Ministry of Domestic Trade and Cost of Living (KPDN) in Terengganu has seized 47,000 liters of diesel fuel valued at approximately RM 1.66 million during a large-scale operation near the jetty in Sungai Kuang, Chukai, Kemaman. The raid took place at 3:45 AM on September 24, resulting in the arrest of a tugboat and eight Indonesian nationals for further investigation.
Terengganu KPDN Director, Mohd Mufsi Lat, stated that the operation was conducted based on intelligence gathered over five months. He noted that the seizure of the vessel and the eight suspects dealt a significant blow to a black-market fuel smuggling network involving foreign nationals.
Upon inspection, authorities discovered 47,000 liters of diesel fuel cleverly concealed in three ballast tanks of the tugboat. These tanks, originally designed to hold water, had been modified to hide the fuel. The seized diesel is estimated to be worth RM 1,657,710, equivalent to over 10.4 billion Indonesian rupiah.
Mohd Mufsi emphasized that the vessel had no legal permits or authorization from the Material Management Agency to store or trade diesel fuel, which is a controlled commodity. “This is a serious violation and demonstrates the sophisticated tactics of fuel smuggling organizations in the region,” he said.
Initial information suggests that the syndicate operated by purchasing diesel fuel from offshore vessels in the South China Sea, then pumping it onto the docked vessel using rubber hoses and specialized pumps. The fuel was subsequently sold on the black market, generating substantial profits for those involved.
During a press conference following the Premier Exhibition 2025 Clearance Ceremony at the KPDN Terengganu Exhibition Store, Mohd Mufsi affirmed that the agency would continue to enhance surveillance and collaborate closely with law enforcement agencies to combat fuel smuggling. This illegal activity results in significant revenue losses and disrupts the stability of the domestic market.
The case is currently under further investigation, with the eight detained Indonesian nationals providing information to uncover the full scope and other links in the smuggling chain. Authorities have not ruled out the involvement of domestic and international groups, as diesel fuel smuggling activities become increasingly complex along Malaysia’s coastal areas.
This is one of the largest illegal diesel seizures in Terengganu in recent times, highlighting the government’s commitment to combating fuel smuggling, a persistent issue in the region.
