29-05-2025
- Business
- Free Malaysia Today
No removal of LPG subsidy, says minister
Domestic trade and cost of living minister Armizan Mohd Ali said his ministry is merely enforcing regulations on subsidised LPG cylinders that have been in place since 2021. (Bernama pic)
PETALING JAYA : The government has not removed the subsidy for liquefied petroleum gas (LPG), says domestic trade and cost of living minister Armizan Mohd Ali.
Rubbishing claims that the subsidy had been withdrawn, Armizan said the government had not made such a decision and that the allegations were aimed at confusing or misleading the public.
'The subsidy is not being removed. The existing rules have been in place since 2021. What we are doing now is enforcing them more strictly,' he said in a statement.
Armizan said there was confusion on the matter after a nationwide operation to combat the misuse and leakage of subsidised LPG, particularly by commercial and industrial sectors.
He said the operation was to tackle two key issues: the use of subsidised LPG cylinders by non-eligible sectors, and illegal decanting activities, where gas from subsidised cylinders is transferred into non-subsidised ones and sold at a profit.
'These rogue operators are making huge profits by selling the gas at prices just below commercial rates, including smuggling it abroad. This is clearly an abuse of public funds,' he said.
Under the existing regulations, businesses storing or using more than three 14kg cylinders (or over 42kg of LPG) at any one time are required to obtain a scheduled controlled goods permit. This rule has been in effect since Oct 15, 2021.
Armizan said enforcement officers are focusing on advocacy rather than punitive action.
'Compounds are not being issued yet while seizures are not being made. Documents being handed out are standard premises inspection notices, not compound notices,' he said, addressing concerns raised by food operators who had received such notices during routine checks.
He also warned against assuming that all restaurants were entitled to subsidised LPG, as the current regulation was aimed at delivering the subsidy in a targeted manner.
'Is it fair for a restaurant selling chicken rice at RM25 a plate to get the same subsidy as a stall charging just RM8?' he said.
Armizan pointed out that Malaysia's LPG subsidy bill had risen from RM2.2 billion in 2013 to nearly RM3.4 billion in 2024, and could grow further if the delivery of the subsidy is not reformed.
He said the LPG subsidy was meant to help households, not to support commercial operations.
'The subsidy comes from public funds, from taxpayers. We must manage it responsibly,' he said.
Earlier, PAS Youth chief Afnan Hamimi Taib Azamudden criticised the enforcement operation, claiming it placed an unnecessary burden on small traders and the public.
He said all traders, including small businesses, would be forced to switch to commercial LPG cylinders that cost nearly RM70 each – almost three times the subsidised rate.
