Diesel paradox: No shortage but there’s one

The ministry should have increased the quota earlier before the stations ran out of diesel, says Petrol Dealers Association of Malaysia vice-president Abu Samah Bachik.

PETALING JAYA: The government say there is no shortage of diesel but the Petrol Dealers Association of Malaysia begs to differ.

On the one hand Domestic Trade, Co-operatives and Consumerism Minister Hasan Malek maintains that there is no diesel shortage but the association’s vice-president Abu Samah Bachik says petrol stations have run out of petrol.

Abu Samah said the shortage was because the increase in subsidised diesel quota came too late.

“The ministry should have increased the quota earlier, before the stations ran out of diesel.

“You have to understand that although the supply is sufficient, distribution takes time because logistics is limited,” Abu Samah told FMT.

Yesterday, Hasan told FMT that there was no issue of diesel shortage in Sabah and other states as the diesel supply was sufficient.

However, the minister contended that the purported diesel shortage crisis lies in terms of its distribution.

“There is a problem in the distribution. To solve the problem, we have revised the subsidised diesel quota,” he said.

Abu Samah on the other hand today said that in the future, the increase in quota should be prompt.

“The quota should not surface only when there is massive shortage. There must be consultation before a shortage occurs,” he said.

When asked if the increased quota of 20 million litres would be sufficient, Abu Samah said: “I cannot really say whether it will be enough.

“It will only be enough if the quota is until the end of the month,” he said.

He explained that due to the shortage of diesel in the past four days, it would only be natural for users to fill up their tanks to the brim. And because of this, demand would increase.

In a statement yesterday, the ministry said it has approved an additional quota of 24,196,271 litres across the country.

Foul play suspected

When asked if smuggling activities could be a factor in the shortage of diesel, Abu Samah said there was such a possibility.

“There is a possibility that diesel is taken by those who use subsidised diesel. Thus, the ministry should have intensified its efforts to curb this problem.

“We are ready to cooperate and at this juncture, I urge all oil stations to report if they suspect any form of manipulation,” he said.

Hasan yesterday admitted that there was a possibility of diesel being smuggled elsewhere.

He however gave assurance that the ministry with the police and customs are monitoring through static enforcement.

“There is a possibility that diesel is smuggled elsewhere. We do suspect there is some sort of foul play going on.

“However, we (the ministry), together with the police and customs are monitoring through static enforcement,” he said.