KPDN minister's full statement regarding OPS GASAK
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.
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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.
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