Latest news with #OpGasak
Free Malaysia Today
10 hours ago
- Business
- 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.
New Straits Times
3 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
3 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.
Sinar Daily
3 days ago
- Business
- Sinar Daily
Delay use of commercial LPG, burdens small traders
Rosol also stressed that any subsidy restructuring must be carried out cautiously, with clear communication and appropriate support incentives. The government is urged to postpone the mandatory use of 14-kilogramme commercial LPG cylinders for small traders. Inset: Rosol – Stock photo KUALA LUMPUR – The government has been urged to postpone the mandatory implementation of the use of 14-kilogramme commercial liquefied petroleum gas (LPG) cylinders for small traders, which took effect on May 1. Hulu Terengganu Member of Parliament Datuk Rosol Wahid said the move not only caused operational costs to surge by up to threefold but also put pressure on small traders already struggling to stay afloat. 'Many food business owners have complained to me that they previously spent around RM2,600 a month on gas, but now they are forced to bear costs reaching RM7,000 after being directed to use commercial LPG,' he said in a statement on Thursday. The former Domestic Trade and Consumer Affairs (KPDN) deputy minister said the situation worsened as many traders became targets of Op Gasak over the past three weeks, with some fined and their gas cylinders confiscated by the authorities. 'I sympathise with the plight of small traders who are not only burdened by the high cost of living but are now facing pressure from a hastily implemented policy by the Madani government,' he said. Rosol also stressed that any subsidy restructuring must be carried out cautiously, with clear communication and appropriate support incentives. 'The chain reaction from this cost increase will ultimately be borne by consumers. Don't be unjust to the people,' he added. Therefore, he urged the government to postpone the implementation until a targeted aid plan and suitable support measures are introduced for small traders. 'At the very least, the government must have a dedicated plan to ease the cost burden so that end users do not have to bear the sudden impact,' he said.
New Straits Times
6 days ago
- New Straits Times
Op Gasak: Authorities bust syndicate misusing subsidised LPG
KLUANG: The Johor Domestic Trade and Cost of Living Ministry foiled a suspected illegal decanting operation involving liquefied petroleum gas (LPG) during a raid at a storage facility in Simpang Renggam today. The operation, conducted under Op Gasak, followed days of intelligence gathering and surveillance. Its director Lilis Saslinda Pornomo said officers discovered numerous LPG cylinders and hose connectors at the premises, believed to have been used to siphon subsidised gas from 14kg domestic cylinders into larger 50kg tanks intended for industrial use. "This unauthorised activity, known as decanting, is a serious offence under the Control of Supplies Act 1961. "A total of 247 LPG cylinders, both filled and empty, of various brands and sizes, along with equipment, were seized," she said in a statement today. The estimated value of the seizure is RM61,000, she said. She said durther investigations are ongoing to trace the supply chain and identify the individuals or companies involved, including the origin of the LPG and its distribution network. "If convicted, individuals face a maximum fine of RM1 million, up to three years' imprisonment, or both, while repeat offenders risk fines of up to RM3 million or five years' jail. "Companies may be fined up to RM2 million, and up to RM5 million for subsequent offences," she said. She said stern action would be taken against any syndicate found misusing subsidised controlled goods. The public is urged to report suspicious activities via the ministry's WhatsApp at 019-848 8000, the e-aduan portal at e-aduan@ or the call centre at 1-800-886-800.
