The interstate deliveries are on a trial basis and Malaysian authorities have set up an investigative body to look into the shortfall in diesel supply.

Miri usually gets its diesel from Bintulu, which last month was hit by serious shortages. Bintulu usually delivers some 7.9 million litres of diesel per month.

Speaking to The Star newspaper the head of the ministry in Miri, Balwant Singh, said, “Shell has started delivering diesel from its bases in Kota Kinabalu and Labuan direct to Miri using sea tankers to ensure that there will be no disruption to the flow of diesel into this region.”

Singh said Bintuli diesel production would not cease altogether, and Petronas would continue to transport almost 4 million litres to Miri every month, guaranteeing two sources of supply.

Sarawak domestic trade and consumer affairs director Iskandar Halim Sulaiman said the operation had been launched to investigate the case here and in Bintulu and would be extended to other parts of Sarawak if required.

“We want to find out where the diesel has gone to,” he said.

“We suspect that one of the causes is that the fuel has been siphoned off for sale to industrial outlets. The difference in profit is 80 sen per litre from such illegal trade. It is very lucrative and is a form of cheating.

“We are also investigating whether permit holders have been selling the subsidised diesel to industrial outlets to earn the big profit.”