PUTRAJAYA, Aug 5 — The Domestic Trade and Cost of Living Ministry (KPDN) is intensifying enforcement efforts against the misuse of subsidised liquefied petroleum gas (LPG), particularly at food premises like canteens, which have been identified as major hotspots for subsidy leakage.
Its Deputy Minister Datuk Fuziah Salleh said they are taking the issue seriously, and enforcement operations under the “Operasi Gas Memasak” (Ops Gasak) initiative are being ramped up to prevent irresponsible parties from exploiting government subsidies.
The focus on canteens comes after the discovery of several cases involving individuals or entities posing as legitimate businesses or wholesalers, but who divert subsidised LPG to industrial use.
“We found that the syndicate transfers subsidised LPG from 14-kg cylinders, which cost RM26.60 each, into non-subsidised cylinders of the same size, which are sold at RM70 per unit.
“This significant price difference highlights the substantial profits that can be gained through such illegal practices, making it a major form of subsidy leakage that the authorities are tackling on a large scale,” she said in an exclusive interview with Bernama recently.
Fuziah cited a recent case in Johor where KPDN uncovered fraudulent activity involving a canteen that was disguised as an LPG wholesaler. The premises were found to be misusing subsidised LPG meant for household and micro-business use.
“The individuals involved have been arrested and found to have committed offences under the Supply Control Act 1961. Strict enforcement action has been taken,” she said.
Ops Gasak is currently being implemented nationwide, except in Sarawak, where LPG enforcement falls under the state’s own ordinance and jurisdiction.
Fuziah added that Ops Gasak also aims to ensure that subsidised LPG is used solely by eligible households and micro-entrepreneurs, in line with the government's targeted subsidy policy.
“In terms of the law, there is no defect, but there was misuse by the wholesaler who supplied subsidised LPG to unqualified parties such as industry. So in this case, it is highly likely that the wholesaler who committed the offence will have to be held responsible.
“We have sufficient regulations to protect this subsidy, but there are still parties who abuse it,” she said.
Prior to this, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali had announced that Ops Gasak would run from May 1 to October 31. The initiative is part of the broader Kita Gempur movement to combat the manipulation and leakage of subsidised goods.
