Cracking down on LPG misuse

The Star

a day ago

PUTRAJAYA: The Domestic Trade and Cost of Living Ministry is intensifying enforcement against the misappropriation of subsidised liquefied petroleum gas (LPG) through 'decanting', which has been identified as one of the main causes of subsidy leakage, says Datuk Fuziah Salleh (pic).
The Deputy Domestic Trade and Cost of Living Minister said the ministry is taking the issue seriously and enforcement under the Ops Gasak initiative is being ramped up to prevent irresponsible parties from exploiting government subsidies.
(Decanting is the process of illegally transferring LPG from subsidised cylinders to commercial cylinders.)
Fuziah said the focus of Ops Gasak on decanting follows the discovery of several cases involving individuals or entities posing as legitimate businesses or wholesalers but who divert subsidised LPG to industrial use.
'We found that the syndicate transfers subsidised LPG from 14kg cylinders, which cost RM26.60 each, into non-subsidised cylinders of the same size, which are sold at RM70 per unit.
'This significant price difference highlights the substantial profits that can be gained through such illegal practices, making it a major form of subsidy leakage that the authorities are tackling on a large scale,' she said in an exclusive interview with Bernama recently.
She cited a recent case in Johor where the ministry uncovered decanting activities that were carried out under the guise of legitimate LPG wholesale operations.
'The individuals involved have been arrested and found to have committed offences under the Supply Control Act 1961. Strict enforcement action has been taken,' she said.
Fuziah added that Ops Gasak is currently being implemented nationwide, except in Sarawak, where LPG enforcement falls under the state's ordinance and jurisdiction.
She explained that Ops Gasak also aims to ensure that subsidised LPG is used solely by eligible households and micro-entrepreneurs, in line with the government's targeted subsidy policy.
'In terms of the law, there is no defect, but there was misuse by the wholesaler who supplied subsidised LPG to unqualified parties such as industries.
'So in this case, it is highly likely that the wholesaler who committed the offence will have to be held responsible.
'We have sufficient regulations to protect this subsidy, but there are still parties who abuse it,' she said.
Prior to this, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced that Ops Gasak would run from May 1 to Oct 31.
The initiative is part of the broader Kita Gempur movement, launched on Oct 19, to combat the manipulation and leakage of subsidised goods.