Consumers will ultimately pay for eateries' use of non-subsidised gas, says Dr Wee

The Star

3 days ago

PETALING JAYA: Consumers will ultimately bear the cost of eateries using liquefied petroleum gas (LPG) for commercial use, which is 170% costlier than subsidised gas for domestic purposes, says Datuk Seri Dr Wee Ka Siong.
The MCA president said eateries are required to use 14kg purple-coloured gas cylinders priced at RM70 each, as opposed to the green-coloured gas cylinders meant for domestic use, which cost RM26 each.
"What does the 170% increase have to do with the cost of living?
"If you want to eat rice or noodles, you have to cook it first. To cook, you need fire. For fire, you need gas.
"If the price of gas goes up, then the price of food will also go up," he said in a video posted on social media on Saturday (May 31).
"Who has to bear this price increase? The answer, of course, is consumers," he said.
He added that traders also need a permit if they use more than three 14kg LPG cylinders a month, and failing which, are subject to action under Ops Gasak by the Domestic Trade and Cost of Living Ministry.
Dr Wee also said there was no need to be too strict on small-time food vendors who barely earn enough to make ends meet.
He questioned why the government is unable to provide subsidies to small traders despite being the world's 5th largest exporter of liquefied natural gas.
"What is the point of billions of investments if we cannot cover gas subsidies, said to be RM3.4bil in 2024?
"What is the point of increasing the Sales and Service Tax (SST) rate from 6% to 8% if the revenue collected is not returned to the people through subsidies?" he asked.
As of May 1, eateries including hawkers will be required to use 14kg purple-coloured commercial gas cylinders priced at RM70 each.
The ministry also launched Ops Gasak to combat any misuse of subsidised LPG and has made seizures amounting to RM883,000 so far.
On May 23, the Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said LPG subsidies have cost the government RM3.4bil and said premises using more than 42kg of LPG (which amounts to three 14kg cylinders) must apply for a permit under the Control of Supplies (Amendment) Act 2021.