Subsidized Malaysian petrol is widely sold in Thailand, drastically reducing the demand for diesel

According to the latest reports, the smuggling of subsidized gasoline from Malaysia remains prevalent in areas near Danok and Sadao, Thailand, although it is said to be less rampant than before.

The Malaysian media conducted a survey on the 13-kilometer route from the border town of Dannok to Sadao, and found that there were at least 8 places on both sides of the road selling this kind of fuel. Most of the petrol is packed in 1.5 and 2 litres bottles, which are placed on wooden shelves in front of auto repair shops near the main road for sale.

The cost of these bottles of gasoline is THB 30-35 each, which equals to about RM 3.89-4.53, which is slightly cheaper than the current price of THB 35.45 per litre for gasoline in Thailand. In Malaysia, the price of RON 95 gasoline is RM 2.05 per litre.

A seller, who wishes to remain anonymous, said that most of the selling points of Malaysian petrol are on the outskirts of Dannok, close to the Sadao at the Malaysian border. Most of the bottled petrol is sold to motorcycle owners who have a higher demand for cars. In the past, there was a higher demand for diesel than petrol from Malaysia, but as diesel prices fluctuate in Malaysia, fewer and fewer sellers trade in diesel, as the profit margin is now much smaller due to the rising price of diesel.