Malaysia Seizes Smuggled Diesel Worth $1.37 Million

Malaysian authorities have seized two tankers and 700,000 liters of diesel in a major fuel smuggling bust. The estimated value of the confiscated fuel is $1.37 million. The Maritime Enforcement Agency (MMEA) detained the vessels over the weekend. They were allegedly conducting an illegal ship-to-ship fuel transfer off the coast of Penang. Officials acted on intelligence reports, according to Penang MMEA director Muhammad Suffi Mohd Ramli. The illegal transfer involved enough diesel to fill about 185,000 gallons. Malaysia is intensifying efforts to stop fuel smuggling. The region faces supply shortages and market disruptions partly due to the war in the Middle East. Ship-to-ship transfers, where fuel is moved between vessels at sea, are a common smuggling tactic. They are used to avoid taxes and sell subsidized fuel illegally.