Following these changes, the retail price for B20 diesel in Thailand which is just RM5.40 is currently lower than the unsubsidised retail price in Peninsular Malaysia which is a high RM6.72.
https://www.dsf.my/2026/04/will-thai-diesel-be-smuggled-into-malaysia-with-their-lower-prices/
Having tracked diesel fuel price trends in Southeast Asia, I’ve noticed that Thailand’s pricing strategies have created notable differences in retail costs, especially with B20 diesel. The price of RM5.40 in Thailand contrasts sharply with Peninsular Malaysia’s RM6.72 unsubsidised rate, which raises questions about how this gap influences consumer behavior and regional trade. In my experience, such discrepancies often lead to challenges like cross-border diesel smuggling, where cheaper fuel is transported illegally to markets with higher prices. This not only affects local fuel retailers but also government revenues and environmental standards. Moreover, areas close to the border could see fluctuations in fuel availability and price stability as demand shifts. It’s important for authorities in Malaysia to monitor this situation closely and consider policy adjustments or cooperation with Thai counterparts to mitigate risks. From a personal perspective, the affordability of B20 diesel in Thailand could encourage more vehicles to switch to this blend, benefiting air quality and engine performance due to B20’s 20% biodiesel content. However, the economic impact on Malaysia’s fuel market and enforcement against smuggling remain key concerns to watch in the coming months.

