LPG subsidies for ‘rakyat prices' traders

Daily Express

01-07-2025

Published on: Tuesday, July 01, 2025
Published on: Tue, Jul 01, 2025
By: Crystal E Hermenegildus Text Size: Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. Kota Kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) is committed to ensuring that subsidised liquefied petroleum gas (LPG) continues to benefit micro and small food and beverage (F&B) traders. Its Minister Datuk Armizan Mohd Ali said amendments to the Supply Control Regulations (PPKB) 2021 are being proposed to formally recognise the needs of micro and small F&B operators many of whom rely on LPG to run their daily operations. 'Food and beverage traders should not worry. As long as they offer reasonably priced food and services, they will continue to benefit from the LPG subsidy,' Armizan said this during a press conference at Sabah International Convention Centre (SICC), Monday. Under the current PPKB 2021, any commercial use of LPG exceeding 42kg requires a control goods permit, effectively limiting access to subsidised LPG for small businesses. The new amendment seeks to ease these restrictions and better reflect the operational realities of such traders. 'In practice, many eateries use more than 42kg at a time — some use five cylinders at once and also need to keep spare stock. The government understands this and is willing to allow usage beyond the current limit, but we must implement proper control mechanisms to prevent abuse,' said Armizan. He stressed that while domestic users and small F&B operators would remain eligible for the subsidy, the government cannot afford for subsidised LPG to be misused. 'We are not here to subsidise lifestyle costs. We are here to ease the cost of living for the people,' he said, citing examples of some establishments charging RM30 for fried rice or RM25 for chicken rice. 'That's not the rakyat's price. It's a lifestyle price.' Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. 'Is it right to let this money be used indiscriminately? The public needs to know that this isn't a small amount,' he said. To ensure fair implementation, Armizan said the Ministry would gather feedback from industry stakeholders and other relevant ministries, such as the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) and the Ministry of Rural and Regional Development (KKDW), before finalising the amended regulation. A technical committee chaired by the Ministry's Secretary-General has also been formed to define and monitor the 'people's price' threshold and to design a subsidy control mechanism that ensures accountability. 'The LPG subsidy must be targeted, controlled and safeguarded. Our priority is to protect the rakyat, not to subsidise profit margins or lifestyle excesses,' Armizan said. Stakeholders unable to attend the engagement sessions are encouraged to submit their proposals and memoranda before the conclusion of the Ops Gasak enforcement campaign on October 31 2025. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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