Fuel smuggling on the rise

Rising oil prices has intensified petrol smuggling from Malaysia into four districts of the southern province of Songkhla, Thailand. Several petrol stations have complained of losses as a result of smuggling by small-scale operators in Saba Yoi, Thepha, Na Thawi and Chana districts. It has been estimated that at least 100,000 liters of fuel is smuggled into the country from Malaysia each day. The military fuel, supplied by PTT, is mostly sold by corrupt soldiers to petrol stations in Phatthalung and Songkhla for about 27 baht (US$0.84) per liter, more than five baht (US$0.15 ) cheaper than the legal product. Thani Sapchamroon, a petrol station operator in Hat Yai, said legal petrol stations have lost more than 60% of their regular sales to the smugglers. A petrol station operator in Songkhla’s Singha Nakhom district said small and medium-sized petrol stations make a monthly payment of 10,000 baht (US$310) to some excise officials, asking them to make an arrest just once a month. (May 1, 2008)