Malaysian Businessman Probed Over Diesel Cache in Songkhla

Authorities in southern Thailand are investigating a Malaysian-owned logistics company after around 100,000 litres of diesel were discovered stored on its premises in Sadao district, Songkhla. The fuel was found following complaints from local residents and reports on social media alleging stockpiling. Officials say the case may involve illegal fuel storage and possession of untaxed imported fuel.

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The case came to light after online posts claimed a transport operator running trailer trucks between Thailand and Malaysia had been storing significant quantities of diesel at a yard on Kanchanavanich Road. Songkhla Governor Rattasat Chidchu ordered a joint inspection involving provincial energy officials, district authorities, police, customs and excise officers.

During the inspection, authorities found about 100,000 litres of diesel in total, including approximately 50,000 litres stored underground and 35,000 litres in above-ground containers within the truck yard. When questioned, the site operator was unable to produce documents proving legal authorisation to store the fuel or records showing its origin. Police subsequently filed charges against both the caretaker and the company owner under the Fuel Control Act of 1999.

Investigators believe the diesel was transported from Malaysia by the company’s own trucks before a recent fuel price increase. The fuel was then reportedly transferred into storage tanks for use in the firm’s transport operations. Officials suspect the practice may have been aimed at avoiding higher fuel costs.

Authorities warned that similar practices could be taking place among other Malaysian-owned logistics firms operating in Sadao and the nearby Hat Yai district. The discovery has raised concerns about potential tax evasion and regulatory breaches within cross-border transport operations in the region.

Khaosod reported that officials have indicated that inspections will now be expanded to other operators across Songkhla province. Further legal action may follow depending on the outcome of the investigation and verification of fuel sources.

Picture courtesy of Khaosod

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Adapted by ASEAN Now Khaosod 5 Apr 2026