KPDN: No reduction in LPG subsidy, focus remains on preventing leakages

New Straits Times

29-05-2025

KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) said that there is no issue of subsidy removal or reduction for liquefied petroleum gas (LPG), contrary to public concern.
Instead, the ministry said current enforcement efforts are aimed at curbing leakages involving controlled goods and preventing manipulation in business activities.
Minister Datuk Armizan Mohd Ali said the LPG subsidy would continue to benefit the target group, the public, as it is a household kitchen subsidy and not intended for the commercial sector.
He said that the ongoing Operasi Gas Memasak (Ops Gasak), which began on May 1, is not a new policy introduced by the Madani government but is part of enforcement under the Supply Control Regulations (Amendment) 2021, which came into force on Oct 15, 2021, under the previous administration.
"Any party using fewer than three 14kg LPG cylinders, amounting to less than 42kg at any given time, need not worry, as they are not subject to the requirement of obtaining a scheduled controlled goods permit.
"Even food business premises storing or using no more than three subsidised LPG cylinders at a time are not required to have the permit," he said in a statement today.
Armizan said the Ops Gasak enforcement operation is focused on two main objectives, preventing the use of subsidised LPG cylinders in the commercial and industrial sectors, and cracking down on illegal decanting activities.
"Decanting refers to the transfer of gas from subsidised LPG cylinders into non-subsidised ones, which are then sold at various prices, between subsidised and market commercial prices.
"These 'subsidy pirates' make substantial profits by undercutting the commercial market, which fuels domestic sales and cross-border smuggling," he said.
Responding to claims that the government had introduced a new policy, Armizan clarified that enforcement officers have been conducting routine inspections under Ops Gasak.
He said KPDN officers will issue a Premises Inspection Statement to those found storing or using more than three LPG cylinders, exceeding the 42kg limit, in line with regulations enforced since 2021.
"Officers also conduct checks at various business premises to ensure compliance with laws under KPDN's jurisdiction, including price display, accurate measurement practices, hoarding activities, and the need for scheduled goods permits.
"For LPG, the regulations stipulate that storing or using more than 42kg, or over three 14kg cylinders, at any one time requires a permit," he said.
Armizan also acknowledged that there had been some confusion over the documents issued by enforcement officers to food outlets.
He clarified that it was a standard Premises Inspection Statement and not a compound notice, adding that no items were confiscated.
"This document is routinely issued during inspections.
"I stress that Ops Gasak is mainly targeted at illegal decanting and the use of subsidised LPG by the industrial sector. For food vendors, current enforcement is more focused on advocacy and legal awareness under the 2021 regulations," he added.