Armizan: Committee set up to review subsidised LPG regulations
KUALA LUMPUR: A technical committee has been established to review the need for amendments to the Control of Supplies (Amendment) Regulations 2021, particularly in relation to the use of subsidised liquefied petroleum gas (LPG).
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the committee, chaired by the ministry's secretary-general, has been operational since the launch of Ops Gasak on May 1.
"A full report from Ops Gasak will serve as the primary basis for consideration in improving the current regulations.
"Among others, recommendations and input from various parties will also be considered before being brought to the Cabinet," he said in a statement yesterday.
Ops Gasak, which runs from May 1 to Oct 31, aims to curb illegal activities such as decanting (transferring gas from subsidised LPG cylinders to non-subsidised ones), smuggling, and the misuse of subsidised LPG by medium and large-scale industrial sectors.
Armizan said Ops Gasak is being carried out under the Control of Supplies Act 1961, the Price Control and Anti-Profiteering Act 2011, and the Control of Supplies (Amendment) Regulations 2021, without the introduction of new policies or subsidy cuts.
"There has been no subsidy removal, as alleged by certain parties. However, this enforcement exercise is to ensure that subsidies reach their intended recipients," he said.
He acknowledged that some issues have arisen within the food and beverage sector, but said the current approach towards such premises focuses on advocacy and inspection, with no legal action taken so far.
The Control of Supplies (Amendment) Regulations 2021, which came into force on Oct 15, 2021, limits the use of subsidised LPG to a maximum of 42kg at any one time for commercial purposes. Any party exceeding this limit must obtain a Scheduled Controlled Goods Permit and switch to non-subsidised LPG.
Armizan said some food and beverage traders have raised concerns that the regulation places pressure on their business costs, which in turn could affect food prices.
"However, it must be understood that LPG subsidies are intended for household use, not commercial operations.
"Current regulations still allow the use of up to 42kg, equivalent to three 14kg cylinders, without the need for a permit," he said.
He said any intention to use more than three subsidised cylinders at a time would require an amendment to the existing regulation.
"Such considerations must take into account various factors, including the scale of the business and food pricing.
"For example, chicken rice is sold at prices ranging from RM8 to over RM20 per plate, yet all traders currently receive the same subsidy," he said.
Armizan stressed the importance of monitoring mechanisms and control elements, such as the use of permits, to prevent illegal activities like decanting for below-market sales or smuggling abroad.
"For instance, subsidies for a business using five cylinders daily could amount to RM6,510 a month, and up to RM13,020 for those using 10 cylinders daily, all funded by public money," he said.
He said all recommendations, data and insights from the implementation of Ops Gasak would serve as the main reference in determining whether amendments to the Control of Supplies (Amendment) Regulations 2021 are necessary, and if so, what form they should take.
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