The government is intensifying operations against fuel smuggling and supply risks as global oil prices exceed USD 100 per barrel due to Middle East tensions.

KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry is stepping up enforcement against fuel smuggling and supply risks as global oil prices soar above US$100 per barrel amid the Middle East crisis, said its minister Armizan Mohd Ali.

He said rising global oil prices have widened the gap between Malaysia’s subsidised fuel prices and market prices in neighbouring countries, raising the risk of smuggling and cross-border supply disruptions.

“The risk of smuggling remains high due to the difference between subsidised domestic prices and market prices in neighbouring countries that do not provide such subsidies. Therefore, we will strengthen enforcement,” Armizan said at a media conference yesterday.

He said Ops Tiris would be intensified to ensure that fuel supplies are not diverted across borders, particularly with Aidilfitri approaching.

Armizan said the ministry is also monitoring the possible misuse of subsidised fuel within the domestic industrial sector.

He said Prime Minister Datuk Seri Anwar Ibrahim has instructed ministries to monitor developments closely and prepare short, medium and long-term projections.

“During the Cabinet meeting last Wednesday, the prime minister instructed every ministry to act within their respective jurisdictions.

He assured that supply is sufficient for Hari Raya and the many open house events in the following weeks.

“We have made early preparations together with the agriculture sector, wholesalers, producers and retailers. There is no need for concern or panic buying.”

Armizan said the ministry would work with the Agriculture and Food Security as well as Investment, Trade and Industry ministries to identify essential goods that may be affected if the conflict continues.

“If necessary we will identify alternative sources should exports from certain countries be disrupted. Contingency plans are already in place.”

He said the ministry would implement the Festive Season Maximum Price Scheme for Hari Raya Aidilfitri from March 14 to 28, covering 27 goods, up from 26 last year.

He added that most ceiling prices have been maintained or reduced due to adequate supply and improved currency conditions.

Traders selling above the ceiling price may face fines of up to RM100,000 for individuals or RM500,000 for companies under the Price Control and Anti-Profiteering Act 2011.

 The Sun Malaysia