Thai Motorists Flock to Malaysia for Cheaper Fuel, Smuggling Fears Rise
Motorists in southern Thailand are crossing the border to Malaysia to fill up their tanks, lured by cheaper fuel prices. This comes after a recent change in Malaysia's fuel policy, which has led to a significant price difference for certain petrol types.
Malaysia has increased the price of RON95, a type of petrol commonly used in the country, to 2.60 ringgit per litre for foreigners and vehicles registered outside Malaysia. Meanwhile, locals continue to enjoy subsidised rates at 1.99 ringgit per litre. This price hike has made RON97, the premium fuel, the cheaper option for foreign vehicles at 3.18 ringgit per litre. In contrast, Gasohol 95 in Thailand is priced at a minimum of 32.65 baht, making it more expensive than RON97 in Malaysia. The price disparity has led many Thai motorists to travel to Malaysia to fill up, with the Thai Finance Minister, Ekniti Nitithanprapas, acknowledging the issue. However, this practice also encourages smuggling of petrol and diesel into Thailand.
The Malaysian government's decision to increase petrol prices for foreigners has led to an influx of Thai motorists crossing the border to buy cheaper fuel. While this may help alleviate fuel shortages in Malaysia, it also presents challenges in terms of smuggling and potential strain on Malaysian fuel supplies. The Thai government is aware of the situation and is likely to monitor the impact of this policy change closely.
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