The accused, lorry driver Witthaya Choochien, made the plea after the charge was read out by judge Noor Zaihan Mohamad Ali.

Witthaya, 29, was charged with possessing a controlled substance – 322 litres of unlicensed diesel – in an extra tank of a lorry with a Thai registration number in the Bukit Kayu Hitam industrial area, at around 6.05am on July 11.

He is accused of violating Rule 3(1) of the Control of Supplies Regulations 1974, an offence under Section 21 of the Supply Control Act 1961 and punishable under Section 22(1) of the same act.

If convicted, he faces a fine of up to RM1 million, imprisonment of up to three years, or both.

Earlier in proceedings, prosecuting officer Siti Nurdinasafira Mohd Sakri from the domestic trade and cost of living ministry asked the court to impose bail of RM15,000 for the accused.

However, defence lawyer Lim Wei Yong requested a lower bail, saying his client had a wife and two young children to support.

The court set bail at RM10,000 with two local sureties and scheduled Sept 9 for the submission of the chemical report.