The state Anti-Smuggling Unit seized a Thai-registered lorry yesterday which had seven special compartments to store up to 1,200 litres of fuel.
A Thai national in his 30s was detained after a high-speed chase in Sintok near here.
Bukit Kayu Hitam unit commander Mohd Zunaidi Naritt said officers had earlier spotted the man and another Thai filling up their lorries at a petrol kiosk about 5pm.
He said the men sped off in their vehicles after his officers in a four-wheel vehicle tried to approach them.
After a short chase, Mohd Zunaidi's men managed to block the path of one of the lorries.
Upon checking, they found seven hidden compartments under the seat, engine compartment and undercarriage.
Mohd Zunaidi said checks showed the Thai had been visiting several petrol kiosks near the Malaysia-Thai border daily over the past few days.
"We believe he and the other Thai were buying subsidised diesel to sell in south Thailand," he said.
In another case the same day, the unit detained a local for attempting to smuggle out 110kg of cooking oil.
The suspect, in his 40s, was arrested during a routine check at the customs, immigration and quarrantine complex here about 1pm.