Latest news with #PetalingJayaCoffeeshopAssociation
The Star
2 hours ago
- Business
- The Star
It's a gas-tronomic issue
Stark difference: The subsidised LPG gas cylinder seen here costs RM26 while a commercial variation is priced at RM70. Eatery owners want more clarity over rules on LPG use PETALING JAYA: A switch to commercial liquefied petroleum gas (LPG) by hawkers could lead to consumers having to pay higher food prices, says the Petaling Jaya Coffeeshop Association. 'We do not want to pass down any cost as it does not solve any problem. 'At the end of the day, we will lose customers. People will eat out less due to smaller spending power and ultimately, the impact comes back to us,' said association president Keu Kok Meng. A subsidised LPG gas cylinder costs RM26. But the commercial variation is priced at RM70, which means an almost three times increase in cost. The controversy over LPG emerged when the Domestic Trade and Cost of Living Ministry began Ops Gasak from May 1 to Oct 31 to look into the misuse of subsidised LPG. According to the ministry, LPG subsidies is intended for households. It is not a trade or commercial subsidy. But any party is allowed to use a maximum of 42kg (three cylinders of 14kg size) at any one time without requiring a permit. However, MCA president Datuk Seri Dr Wee Ka Siong has highlighted a PETRONAS directive dated April 30 that gas dealers should stop selling 12kg and 14kg subsidised LPG cylinders to commercial premises such as restaurants, hawkers stalls and mamak shops. The matter had led to anxiety among small traders and hawkers, Dr Wee said, adding that they should be given an assurance that they can continue using subsidised LPG. Keu told a press conference yesterday that it had been a tough time for hawkers. Taking into account the cost of commercially priced LPG, he said a bowl of noodles could go up by more than RM1. Citing the example of a stall selling prawn noodles and using two subsidised gas cylinders a day amounting to RM52, Keu said a switch to commercial gas would mean that the cost would be RM140 instead. He claimed that enforcement officers carrying out Ops Gasak had taken action against a place in Setia Alam, Selangor, although the ministry had previously explained that the inspections of food and beverage outlets are conducted as an 'advocacy' move. 'It is stressful to hear about seizures being made,' he said, adding that there should be clarity about Ops Gasak. Keu said they had written to various stakeholders on this issue including the ministry, MPs and MCA leaders. Petaling Jaya MP Lee Chean Chung, who was present at the press conference yesterday, said he had sought clarification on the matter from the Selangor office of the Domestic Trade and Cost of Living Ministry. He also proposed the ministry consult stakeholders like food courts, restaurants and coffeeshop operators, as well as MPs, before implementing such measures.
The Star
15 hours ago
- Business
- The Star
Eateries fear losing customers over commercial LPG costs, says association
Credit- LOW BOON TAT/The Star PETALING JAYA: Consumers will inevitably bear the brunt if food operators are forced to use commercial liquefied petroleum gas (LPG) in their operations, says a coffeeshop association. 'We do not want to pass down any costs as it does not solve any problems. 'At the end of the day, we will lose customers. Consumers will eat out less due to smaller spending power and ultimately, the impact comes back to us,' said Petaling Jaya Coffeeshop Association president Keu Kok Meng. He said the price of a bowl of noodles could increase by slightly more than RM1, when factoring in the cost of commercially priced gas cylinders. One subsidised LPG gas cylinder costs RM26 while the commercial variation is priced at RM70, marking an almost three times increase in cost. Citing the example of a stall selling prawn noodles, which uses two subsidised gas cylinders a day, costing a total of RM54, Keu said switching to commercial gas would increase the daily cost to RM140 daily. 'Lets say the stall sells 70 bowls of noodles a day, the price of a bowl may go up by slightly more than RM1. 'Passing down this cost will also not solve anything. 'It's been a tough time for hawkers. The best is to just allow the status quo. 'However, if enforcement under Ops Gasak does go ahead, an acceptable solution would be to allow stalls to have at least three subsidised gas cylinders visible on site,' he told a press conference on Tuesday (June 3). It was also attended by Petaling Jaya MP Lee Chean Chung. Keu said they had written to various stakeholders on this issue, including the Domestic Trade and Cost of Living Ministry (KPDN) and MPs, including MCA leaders. This comes after the ministry launched Ops Gasak, taking place from May 1 to Oct 31, to look into the misuse of subsidised LPG. MCA president Datuk Seri Dr Wee Ka Siong has been vocal on this issue, urging for hawkers to be given a clear assurance that they can continue using subsidised LPG so that food prices will not be raised. While the ministry previously said current enforcement measures only comprised advocacy, Keu claimed there was already action taken against a premises in Setia Alam, Selangor. 'It was extremely frightening when we heard about the seizures made. Imagine there are enforcement officers coming into the shop and say the Ops Gasak has begun, then asking for a permit,' he said, urging for more clarity on what this permit meant. 'Currently, we are clear on the permit which will allow users to store more than three cylinders but there is a grey area on whether these three cylinders can be used by the same party,' he said. MP Lee said he had sought for clarification on the matter from Selangor KPDN and said he will continue to help hawkers on this. He also proposed for the ministry to consult stakeholders like food courts, restaurants and coffeeshop operators as well as MPs before implementing such measures.
The Star
26-05-2025
- Business
- The Star
Eateries feeling the heat
Going purple: Under new rules, restaurants have to phase out the use of household gas cylinders. — MUHAMAD SHAHRIL ROSLI/The Star PETALING JAYA: As of May 1, all eateries, including hawker stalls, have been barred from using household subsidised gas cylinders. Instead, they have to use new purple 14kg commercial gas cylinders, which cost RM70 – almost three times the price of household subsidised gas cylinders, which are sold at just RM26. Industry players are also required to apply for a yearly permit if they want to have more than three such cylinders. The Domestic Trade and Cost of Living Ministry is now cracking down to ensure that the food and beverage industry complies. On May 1, the ministry kickstarted Ops Gasak to combat the misuse of liquefied petroleum gas (LPG) subsidies. Since then, officers have seized RM883,000 worth of goods from eateries deemed to have broken the rules. On May 23, minister Datuk Armizan Mohd Ali, who said the LPG subsidy cost the government RM3.4bil, clarified that premises using more than 42kg of LPG - or more than three cyclinders - 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 had put the enforcement on hold. Industry players, however, are still unclear about the requirements surrounding the implementation, warning that a switch to commercial gas could lead to a new round of price hikes. Petaling Jaya Coffeeshop Association president Keu Kok Meng said they are willing to comply with the implementation, but what comes with the switch to the more expensive gas must be made clear. 'The government must announce what comes with the switch of gas cylinders. This is because food at coffeeshops are priced competitively low. This change will affect our costs. 'We understand where the government is coming from but give us time to change and adapt,' he told The Star, adding that they have been given notice by their gas suppliers to apply for permits. He added that based on a survey of a noodle shop selling 70 bowls using two cylinders in a day, the price of noodles will see an increase of more than RM1 per bowl. Malaysian Indian Restaurant Owners' Association (Primas) president Govindasamy Jayabalan said they have written to the ministry to seek clarification on the matter. He also urged the ministry to give them some room to adapt instead of issuing summons or seizing items in their operations. 'The 50kg commercial gas cylinder was not practical to be placed inside the premises, so the 14kg commercial gas cylinder is a good move but the cost is high. 'On average, a small restaurant uses about 100 cylinders per month, so that comes to RM2,600, but now we will have to fork out RM7,000. So, you can see that cost will eventually translate to the price of food. 'We don't mind the switch but we urge the ministry and the government to hear our pleas, especially with the increase in the cost of raw materials. We were able to accommodate when they removed the egg subsidy, but this is too high,' he said. From May 1-20, a total of 74 cases were recorded with a seizure value of RM 883,000, the ministry's enforcement director-general Datuk Azman Adam said. He added that the ministry would use enforcement to ensure no one diverts subsidised goods meant for the people.
