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Malaysia seizes US$1.37 million worth of diesel in illegal fuel transfer off Penang

Malaysia’s Maritime Enforcement Agency (MMEA) said ⁠it detained ⁠two tankers for allegedly conducting ⁠an illegal ship-to-ship transfer of about 700,000 litres (185,000 gallons) of diesel…

By Samantha Johnson / April 13, 2026
Malaysia’s Maritime Enforcement Agency (MMEA) said ⁠it detained ⁠two tankers for allegedly conducting ⁠an illegal ship-to-ship transfer of about 700,000 litres (185,000 gallons) of diesel off the island of Penang over the weekend.
Malaysia has been cracking down on fuel smuggling amid mounting shortages and ‌supply disruptions throughout the region caused by the war in the Middle East.

Penang MMEA director Muhammad Suffi Mohd Ramli said authorities carried out checks following an intelligence tip about the ships, which were anchored in the waters off Bagan Ajam on Saturday.

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“The ⁠inspection found that both ships were in a coupled state and were ‌suspected of carrying out ship-to-ship oil transfer activities without permission,” Muhammad Suffi said in a statement on Sunday.

The alleged transfer involved about 700,000 litres of Euro 5 ⁠diesel, while ⁠the total amount seized was estimated at around 800,000 litres, with a value of ‌about 5.43 million ringgit (US$1.37 million), he said.

A ferry sails past a cargo ship anchored off Penang island. Photo: Ivy Ong
A ferry sails past a cargo ship anchored off Penang island. Photo: Ivy Ong

Authorities also arrested 22 crew members, comprising citizens from Malaysia, ‌Myanmar, Russia, ‌the Philippines and Indonesia.

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