LPG cartel busted: 4,500 cylinders seized in night raid
Kuala Lumpur KPDN director Mohd Sabri Seman said the same premises had been raided in August last year, and action was taken against the operator.
However, continued surveillance revealed that illegal activity had resumed.
The syndicate is believed to have transferred subsidised LPG from 14kg household cylinders into 50kg industrial ones, a method known as decanting.
"The subsidised gas, purchased at RM22 per unit, was transferred and resold in industrial cylinders for between RM180 and RM240," he said.
About 4,500 cylinders of various sizes, with an estimated retail market value of RM400,000, were seized in the raid.
Sabri said the decanting process involved the use of ice blocks to cool the gas cylinders, and the frequent entry of ice trucks into the compound raised suspicions.
The repackaged gas was supplied to local businesses, including factories, hotels, and restaurants.
Although the premises held a valid LPG wholesale licence and operated legitimately during the day, it allegedly misused subsidised gas at night to avoid detection.
Investigations also revealed the syndicate was operating under multiple business entities—four to five different companies across Kuala Lumpur—to avoid being traced.
"Each time a company is raided, they change names and locations but continue the same night-time decanting activities. We believe it's the same cartel, operating under a new name," he said.
The raid, which began at 11.20pm, also led to the arrest of two Bangladeshi nationals, who claimed they had only recently started working at the warehouse and had never met their employer, believed to be a local.
Checks revealed both had valid work permits—but for the construction sector, not for handling gas.
"The local owner of the premises has been identified. The detained foreign workers will be handed over to the Immigration Department for further action," Sabri said.
The case is being investigated under Sections 21 and 61 of the Control of Supplies Act 1961.
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