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Stop the blame game, focus on Ops Gasak enforcement issue, Dr Wee tells ministry

Stop the blame game, focus on Ops Gasak enforcement issue, Dr Wee tells ministry

The Star2 days ago

JOHOR BARU: The Domestic Trade and Cost of Living Ministry should focus on the real issue regarding the enforcement of Ops Gasak instead of blaming the previous government, says Datuk Seri Dr Wee Ka Siong.
The MCA president said this in response to its Minister Datuk Armizan Mohd Ali, who reportedly claimed that the law behind the enforcement, where eateries are required to use 14kg commercial liquefied petroleum gas (LPG) cylinders, was passed when Dr Wee was in the Cabinet.
'The core issue is not about who passed the amendments to the Control of Supplies Regulations in 2021, but how it is being enforced today.
'Yes, the amendment in 2021 was passed while I was part of the Cabinet.
"However, up until 2024, there were no large-scale enforcement operations like Ops Gasak that aggressively targeted night markets, stalls, small vendors and food hawkers as it has been done since May 2025,' he said in a statement on Sunday (June 1).
Dr Wee added that even the previous Pakatan Harapan government had backtracked on its plan to enforce the law after considering its consequences.
'The Pakatan Harapan 1.0 government in 2019 also attempted to enforce the use of commercial liquefied petroleum gas (LPG) in restaurants and eateries, but they halted the move after realising the burden it placed on the public.
'The existence of a law does not mean enforcement must be harsh or sudden.
"Many laws have existed for years, but enforcement is often carried out based on the government's discretion and necessity,' he said.
Dr Wee cited the Stamp Act 1949 as an example of such a law, saying that while it has been in force for decades, widespread enforcement on employment agreement stamping only ramped up in 2025.
'Likewise, Ops Gasak, this large-scale enforcement is an administrative decision made by the Madani government in 2025, not a directive from the Cabinet when the 2021 amendment was passed,' he said.
Dr Wee, who is also Ayer Hitam MP, said the enforcement burdens small traders at a time when the public is already under pressure.
'The Sales and Service Tax (SST) hike and the expansion of its scope will begin in June, electricity tariffs will increase in July, RON95 subsidies are being retargeted, and the minimum wage has increased to RM1,700.
'All these add to the operating costs of small traders, and Ops Gasak, which targets small traders using only 12kg and 14kg LPG cylinders, further worsens the pressure on the rakyat,' he said.
He added that a PETRONAS directive, which quoted the Ministry many times, revealed the real impact of Ops Gasak on small traders.
'In a letter dated April 30, 2025, PETRONAS instructed all gas distributors to stop selling subsidised LPG (12kg and 14kg cylinders) to all commercial premises, including restaurants, food stalls and warung.
'This directive has directly caused confusion, anxiety and hardship to thousands of small traders who now fear enforcement action even though they have only ever used small cylinders.
'On the ground, we continue to see many videos and complaints of inspections on small traders, which contradict the narrative that only large industries are being targeted,' he said.
Dr Wee added that Malaysians deserve to benefit from being among the largest gas producers in the world and that LPG subsidies are also not a major financial burden to the country.
As of May 1, eateries, including hawker stalls, will be required to use the 14kg purple-coloured commercial gas cylinders priced at RM70.

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Domestic trade ministry's LPG cylinder operation explained
Domestic trade ministry's LPG cylinder operation explained

Free Malaysia Today

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  • Free Malaysia Today

Domestic trade ministry's LPG cylinder operation explained

From Armizan Mohd Ali Op Gasak is being carried out from May 1 to Oct 31 with the main focus on combating illegal decanting, smuggling and use of liquefied petroleum gas (LPG) cylinders by large- and medium-sized industries. The legal authority for Op Gasak is derived from the Control of Supplies Act 1961, Price Control and Anti-Profiteering Act 2011, and the Control of Supplies Regulations (Amendment) 2021 or PPKB (Amendment) 2021. No new policies or regulations are being introduced, and there are certainly no cuts or abolition of LPG subsidies, as alleged by certain parties. Certain issues have arisen with the implementation and enforcement of PPKB (Amendment) 2021 involving certain business sectors, specifically the food and beverage (F&B) industry. For that reason, inspections at F&B premises under Op Gasak are currently focussed on compliance checks and advocacy. No legal action is being taken against these F&B businesses. Once the operation concludes, a report on Op Gasak will serve as one of the key references for reviewing the relevance of the PPKB (Amendment) 2021, in relation to LPG cylinders. Since Op Gasak commenced on May 1, a technical committee chaired by the domestic trade and cost of living ministry secretary-general was formed to look into the matter. In addition to the Op Gasak report, recommendations and views from various stakeholders will be considered before any proposals are brought to the Cabinet. Under the previous government, amendments were made in 2021 to the Control of Supplies Regulations. One of the amended provisions fixed a limit on the use of LPG cylinders for trade or business purposes. Specifically, the PPKB (Amendment) 2021 states that any business using over 42kg of LPG at any one time requires an application for a scheduled controlled goods permit. This means that any party using more than 42kg (that is more than three of the 14kg cylinders, normally used by domestic users) must apply for a permit and cannot use subsidised LPG cylinders. This amendment has been in force since Oct 15, 2021. There are views that the 2021 regulations have impacted business costs for F&B traders, which in turn could affect their prices if they are not allowed to use subsidised cylinders. The underlying basis of the LPG subsidy is that it is a household consumption subsidy, not one intended for trade or commercial use. However, current regulations allow the use of up to 42kg at any one time without requiring a permit. F&B traders have expressed the need to use more than three subsidised LPG cylinders at once. If this need of theirs is to be considered, amendments to the 2021 regulations — specifically to the 42kg limit — will become necessary. We must also take into account other factors, such as the limit on subsidised cylinders per business and the type and scale of the business (micro, small, medium or large). Moreover, if food prices and cost of living are cited as justifications, the prices charged by these businesses should also be examined. For example, one trader sells chicken rice at RM8 per plate, while another sells it for over RM20. This is a big price difference despite both of them benefitting from the same LPG subsidy. A very important factor to consider is the financial implication on government allocations, which are public funds. For instance, the estimated subsidy for a business using five LPG cylinders a day is RM6,510 per month, based on RM43.40 in subsidy per cylinder. For a business using 10 cylinders daily, the monthly subsidy totals RM13,020 (300 cylinders/month). At the same time, monitoring mechanisms such as the requirement for scheduled goods permits are crucial. Based on the ministry's enforcement, there is a risk of decanting from subsidised supplies to businesses when there is no record-keeping or sale limits in place for verification. Decanting refers to the illegal transfer of LPG from subsidised cylinders to non-subsidised ones for commercial resale below market price, including for smuggling abroad. All these considerations, together with the recommendations and views of various parties, will be taken into account to determine whether the PPKB (Amendment) 2021 should be revised. If amendments are deemed necessary, the parameters and scope of the amendments must be carefully determined. Therefore, the Op Gasak report is a key reference point in charting the way forward for improving the 2021 regulations. Armizan Mohd Ali is the domestic trade and cost of living minister. The views expressed are those of the writer and do not necessarily reflect those of FMT.

Eateries fear losing customers over commercial LPG costs, says association
Eateries fear losing customers over commercial LPG costs, says association

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Eateries fear losing customers over commercial LPG costs, says association

Credit- LOW BOON TAT/The Star PETALING JAYA: Consumers will inevitably bear the brunt if food operators are forced to use commercial liquefied petroleum gas (LPG) in their operations, says a coffeeshop association. 'We do not want to pass down any costs as it does not solve any problems. 'At the end of the day, we will lose customers. Consumers will eat out less due to smaller spending power and ultimately, the impact comes back to us,' said Petaling Jaya Coffeeshop Association president Keu Kok Meng. He said the price of a bowl of noodles could increase by slightly more than RM1, when factoring in the cost of commercially priced gas cylinders. One subsidised LPG gas cylinder costs RM26 while the commercial variation is priced at RM70, marking an almost three times increase in cost. Citing the example of a stall selling prawn noodles, which uses two subsidised gas cylinders a day, costing a total of RM54, Keu said switching to commercial gas would increase the daily cost to RM140 daily. 'Lets say the stall sells 70 bowls of noodles a day, the price of a bowl may go up by slightly more than RM1. 'Passing down this cost will also not solve anything. 'It's been a tough time for hawkers. The best is to just allow the status quo. 'However, if enforcement under Ops Gasak does go ahead, an acceptable solution would be to allow stalls to have at least three subsidised gas cylinders visible on site,' he told a press conference on Tuesday (June 3). It was also attended by Petaling Jaya MP Lee Chean Chung. Keu said they had written to various stakeholders on this issue, including the Domestic Trade and Cost of Living Ministry (KPDN) and MPs, including MCA leaders. This comes after the ministry launched Ops Gasak, taking place from May 1 to Oct 31, to look into the misuse of subsidised LPG. MCA president Datuk Seri Dr Wee Ka Siong has been vocal on this issue, urging for hawkers to be given a clear assurance that they can continue using subsidised LPG so that food prices will not be raised. While the ministry previously said current enforcement measures only comprised advocacy, Keu claimed there was already action taken against a premises in Setia Alam, Selangor. 'It was extremely frightening when we heard about the seizures made. Imagine there are enforcement officers coming into the shop and say the Ops Gasak has begun, then asking for a permit,' he said, urging for more clarity on what this permit meant. 'Currently, we are clear on the permit which will allow users to store more than three cylinders but there is a grey area on whether these three cylinders can be used by the same party,' he said. MP Lee said he had sought for clarification on the matter from Selangor KPDN and said he will continue to help hawkers on this. He also proposed for the ministry to consult stakeholders like food courts, restaurants and coffeeshop operators as well as MPs before implementing such measures.

Ops Gasak's main focus is to curb decanting, smuggling and misuse
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Ops Gasak's main focus is to curb decanting, smuggling and misuse

The Cooking Gas Operation (OPS GASAK) is currently underway from 1 May to 31 October 2025. Its main focus is to curb illegal activities such as decanting, smuggling, and misuse by medium- and large-scale industries. The legal authority underpinning OPS GASAK is the Supply Control Act 1961, the Price Control and Anti-Profiteering Act 2011, and the Supply Control (Amendment) Regulations 2021, known as PPKB (Amendment) 2021. This operation does not introduce any new policy or regulation, let alone involve any cutting or removal of LPG subsidies, as alleged by certain parties.

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