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New Straits Times
14 hours ago
- Business
- New Straits Times
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.
The Sun
a day ago
- Business
- The Sun
KPDN minister's full statement regarding OPS GASAK
KUALA LUMPUR: The following is the full statement by the Minister of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali regarding the Cooking Gas Operations (OPS GASAK) which is ongoing from May 1 to October 31, 2025. The main focus is to combat illegal decanting activities, smuggling, and usage by large and medium-scale industries. The legal authority for OPS GASAK is the Supply Control Act 1961, the Price Control and Anti-Profiteering Act 2011, and the Supply Control Regulations (Amendment) 2021, namely PPKB (Amendment) 2021. Through this operation, there are no new policies and regulations, let alone cuts and abolishment of LPG subsidies as claimed by certain parties. There are arising issues concerning the implementation and enforcement of PPKB (Amendment) 2021 related to specific business sectors, particularly food and beverage sales. For this reason, during OPS GASAK operations, inspections at food and beverage premises are at the advocacy and review stage. No legal action has been taken against food and beverage businesses. Once the period ends, the OPS GASAK report will be among the considerations for reviewing the suitability of the Control of Supplies Regulations (Amendment) 2021 related to Liquefied Petroleum Gas (LPG). A technical committee was established to look into this matter when OPS GASAK began on May 1, 2025, chaired by the Secretary-General of the Ministry of Domestic Trade and Cost of Living (KPDN). Besides the OPS GASAK report, recommendations and views from various parties will be taken into account before the considerations are brought to the Cabinet. Previously, under the previous government's administration in 2021, amendments were made to the Control of Supplies Regulations. Among the amended provisions was the setting of restriction limits on commercial or business use. Specifically concerning LPG, the Control of Supplies Regulations (Amendment) 2021 PPKB (Pindaan) 2021) stipulates that using more than 42 kilograms (kg) at any one time requires an application for a Scheduled Controlled Goods Permit. This means that any party using more than 42 kg (exceeding 3 cylinders of 14 kg size) must apply for a permit and cannot use subsidized LPG cylinders. The PPKB (Pindaan) 2021 has been in force since October 15, 2021. There's a view that the 2021 Regulation impacts the business costs of food and beverage vendors, which, it's argued, will ultimately affect their selling prices if they are not allowed to use subsidised cylinders. The basis for LPG subsidies is as a household kitchen subsidy for the people. It is a consumption subsidy, not a trade or commercial subsidy. However, existing provisions allow any party to use a maximum of 42 kg at any one time without requiring a permit. --MORE ARMIZAN-OPS GASAK 4 KUALA LUMPUR The demand from the food and beverage vendor group is for them to be able to use more than three subsidized LPG cylinders at any one time. If their needs are to be considered, an amendment would need to be made to the 2021 Regulation that sets the 42 kg limit at any one time. Consideration must also take into account various factors, including: the limit of subsidised cylinders for each business, and the type and scale of business (micro, small, medium, large) and similarly, if food prices and the cost of living are cited as reasons, the prices of food and beverages sold by these businesses should be scrutinised. For example, some vendors sell chicken rice for RM8 per plate, while others sell it for over RM20 per plate. The prices vary greatly, even though they all benefit from the same public subsidy. Another crucial aspect to consider is the financial implications required from the Government's allocation, which constitutes public funds and the people's money. For instance, a rough calculation of the total LPG subsidy given to a business using five LPG cooking gas cylinders a day for a month is RM6,510, which means RM43.40 in subsidy per cylinder. Meanwhile, the total subsidy for a business using 10 LPG cylinders a day is RM13,020 a month, for a total of 300 cylinders per month. At the same time, the element of control in terms of monitoring mechanisms, including the requirement for a scheduled controlled goods permit, is also very important to consider because, based on KPDN's enforcement, there's a risk of illegal decanting activities using supply sources from sales to business premises when there are no record elements or sales limits as a basis for review. Decanting is the illegal activity of transferring LPG from subsidised cylinders to unsubsidised cylinders for commercial sale below market price, including for smuggling across borders. All these considerations, along with recommendations and views from various parties, will be taken into account in determining the need for an amendment to the currently enforced PPKB (Pindaan) 2021. If an amendment is the answer, the parameters of that amendment need to be determined. Therefore, the OPS GASAK report is crucial as a basis for guiding improvements to the PPKB (Pindaan) 2021.
New Straits Times
4 days ago
- Business
- New Straits Times
Gas cylinder rule introduced when you were in government, Armizan tells Wee
KUALA LUMPUR: Domestic Trade and Cost of Living Minister Datuk Armizan Ali has hit back at Datuk Seri Wee Ka Siong over his criticism of the ministry's rule concerning the use of gas cylinders at eateries. Armizan reminded the MCA president to verify his facts, pointing out that the rule requiring eateries to obtain a permit for using more than three 14kg liquefied petroleum gas (LPG) cylinders at any one time was introduced by previous administrations, during which Wee was a member of the Cabinet. Referring to the enforcement of Op Gasak, Armizan said the unity government had neither reduced subsidies nor introduced new policies. He stressed that the current administration was merely enforcing regulations and policies approved by previous governments. "The legal authority for Op Gasak is derived from the Supply Control Act 1961, the Price Control and Anti-Profiteering Act 2011, and "Under the Supply Control (Amendment) Regulations 2021, any party using more than 42kg of LPG is required to apply for a Scheduled Controlled Goods Permit. "This regulation was made and enforced on Oct 15, 2021, during the previous administration, in which, to my recollection, Wee was a member of the Cabinet (at the time)," said Armizan in a statement on his Facebook. Op Gasak, which runs from May 1 to Oct 31, is an enforcement campaign aimed at preventing leakages of LPG subsidies. "Perhaps because the 2021 regulation fell under another ministry, he (Wee) may have overlooked it, and his team may not have advised him accurately before he made a public statement. "As such, with due respect, I suggest that Wee review the regulations that were enacted during his tenure as a minister in the government. "However, it is irresponsible to make public statements that mislead the people." Armizan also said the ministry has not taken action, including issuing compounds or carrying out seizures, against food vendors who have yet to obtain the required permits during the Op Gasak campaign period. "At this stage, our focus is on advocacy, verification and raising awareness of compliance obligations within the existing legal framework." He said the ministry is open to feedback and proposals for improvement and has received suggestions from various parties, including leaders from DAP.
The Star
4 days ago
- Business
- The Star
Get ready to pay more at eateries
PETALING JAYA: Consumers will ultimately have to bear the cost as all eateries, including hawker stalls, are now required to use the 14kg commercial liquefied petroleum gas (LPG) cylinders, says Datuk Seri Dr Wee Ka Siong (pic). The MCA president said the use of the commercial cylinder is costlier by 170% compared with the household subsidised gas cylinder sold at just RM26. He said the cost of preparing food will be directly affected with the increase in the price of gas. 'What does the 170% increase have to do with the cost of living? 'If you want to eat rice or noodles, you have to cook it first. To cook, you need fire. For fire, you need gas. If the price of gas goes up, then the price of food will also go up. 'Who has to bear this price increase? The answer, of course, is consumers,' said the Ayer Hitam MP in a video posted on social media yesterday. He added that traders also need a permit if they use more than three 14kg LPG cylinders a month, and failing which, are subject to action under Op Gasak by the Domestic Trade and Cost of Living Ministry. According to Dr Wee, there was no need to be too strict on small-time food vendors who barely earn enough to make ends meet. He questioned why the government is unable to provide subsidies to small traders despite being the world's fifth largest exporter of liquefied natural gas. 'What is the point of billions of investments if we cannot cover gas subsidies, said to be RM3.4bil in 2024? 'What is the point of increasing the Sales and Service Tax (SST) rate from 6% to 8% if the revenue collected is not returned to the people through subsidies?' he added. As of May 1, eateries, including hawker stalls, will be required to use the 14kg purple-coloured commercial gas cylinders priced at RM70. The ministry also launched Op Gasak to combat any misuse of subsidised LPG and has so far made seizures amounting to RM883,000. On May 23, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the LPG subsidy cost the government RM3.4bil. He said that premises using more than three commercial gas cylinders must apply for a permit under the regulations of the Control of Supplies (Amendment) Act 2021. The government had planned the switch to commercial gas in 2019 but postponed its enforcement.
The Star
4 days ago
- Business
- The Star
Consumers will ultimately pay for eateries' use of non-subsidised gas, says Dr Wee
PETALING JAYA: Consumers will ultimately bear the cost of eateries using liquefied petroleum gas (LPG) for commercial use, which is 170% costlier than subsidised gas for domestic purposes, says Datuk Seri Dr Wee Ka Siong. The MCA president said eateries are required to use 14kg purple-coloured gas cylinders priced at RM70 each, as opposed to the green-coloured gas cylinders meant for domestic use, which cost RM26 each. "What does the 170% increase have to do with the cost of living? "If you want to eat rice or noodles, you have to cook it first. To cook, you need fire. For fire, you need gas. "If the price of gas goes up, then the price of food will also go up," he said in a video posted on social media on Saturday (May 31). "Who has to bear this price increase? The answer, of course, is consumers," he said. He added that traders also need a permit if they use more than three 14kg LPG cylinders a month, and failing which, are subject to action under Ops Gasak by the Domestic Trade and Cost of Living Ministry. Dr Wee also said there was no need to be too strict on small-time food vendors who barely earn enough to make ends meet. He questioned why the government is unable to provide subsidies to small traders despite being the world's 5th largest exporter of liquefied natural gas. "What is the point of billions of investments if we cannot cover gas subsidies, said to be RM3.4bil in 2024? "What is the point of increasing the Sales and Service Tax (SST) rate from 6% to 8% if the revenue collected is not returned to the people through subsidies?" he asked. As of May 1, eateries including hawkers will be required to use 14kg purple-coloured commercial gas cylinders priced at RM70 each. The ministry also launched Ops Gasak to combat any misuse of subsidised LPG and has made seizures amounting to RM883,000 so far. On May 23, the Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said LPG subsidies have cost the government RM3.4bil and said premises using more than 42kg of LPG (which amounts to three 14kg cylinders) must apply for a permit under the Control of Supplies (Amendment) Act 2021.
