Police have dismantled a diesel subsidy diversion operation after uncovering a bungalow being used as a fuel collection centre, with four local men arrested and 15,000 litres of diesel seized during a raid in Miri on Wednesday afternoon.
Miri district police chief ACP Mohd Farhan Lee Abdullah said the raid was carried out at about 12pm at a bungalow in Tanjong Lobang by officers from the Sarawak Police Contingent Headquarters together with the Miri district police.
He said the four suspects, aged between 42 and 52, were caught in the act of allegedly carrying out diesel subsidy diversion activities at the premises.
“Initial investigations found that the suspects had rented the bungalow and used part of the premises as a storage and collection centre for subsidised diesel,” he said in a statement.
Police also seized a tanker lorry believed to be used in the illegal operation.
Investigations revealed that the syndicate sourced diesel through runners who purchased subsidised fuel from petrol stations around Miri before transporting it to the bungalow for resale at an agreed price.
The fuel was allegedly bought using private vehicles and jerry cans before being transferred into storage tanks set up at the location.
Further checks at the premises uncovered about 15,000 litres of diesel, a 16,000-litre tanker lorry, an SUV, and various equipment believed to be used in the illegal activity.
The total value of seizures is estimated at RM131,079.
Farhan said the case has been handed over to the Ministry of Domestic Trade and Cost of Living (KPDN) Miri branch for further investigation.
The case is being investigated under Section 20(1) and Section 21 of the Control of Supplies Act 1961, read together with Regulation 3(1) of the Control of Supplies Regulations 1974.
He said diesel subsidy diversion activities not only cause significant losses to the government but also disrupt the supply chain for eligible users.
Police have urged petrol station operators in Miri not to collaborate with syndicates involved in fuel diversion.
Members of the public with information on such activities are encouraged to report it to IPD Miri or the KPDN Miri office to assist enforcement efforts.
