Kuala Lumpur: The Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, has issued a statement detailing the ongoing Cooking Gas Operations (OPS GASAK), which began on May 1 and will continue until October 31, 2025. The operation primarily targets illegal decanting activities, smuggling, and the misuse of liquefied petroleum gas (LPG) by large and medium-scale industries.
According to BERNAMA News Agency, the legal framework for OPS GASAK is based on several legislative acts, including the Supply Control Act 1961 and the Price Control and Anti-Profiteering Act 2011. These operations are being conducted under the Supply Control Regulations (Amendment) 2021, known as PPKB (Amendment) 2021. The Minister emphasized that there are no new policies or regulations introduced through this operation, nor are there any cuts or abolishments to LPG subsidies.
The operation has raised issues related to the implementation and enforcement of the PPKB (Amendment) 2021, particularly impacting specific business sectors like food and beverage sales. During OPS GASAK, inspections at food and beverage premises are currently at the advocacy and review stage, with no legal actions taken against these businesses. The results of OPS GASAK will be considered when reviewing the suitability of the Control of Supplies Regulations (Amendment) 2021 concerning LPG.
A technical committee, chaired by the Secretary-General of the Ministry of Domestic Trade and Cost of Living, was established to oversee OPS GASAK. This committee will consider the OPS GASAK report, along with recommendations and views from various parties, before presenting them to the Cabinet for consideration. The 2021 amendments to the Control of Supplies Regulations set limits on commercial LPG use, requiring a Scheduled Controlled Goods Permit for usage exceeding 42 kilograms.
The regulations, effective since October 15, 2021, allow for a maximum of 42 kg of LPG use without a permit. There is a view that these regulations affect business costs for food and beverage vendors, potentially influencing their pricing. The LPG subsidy is intended as a household kitchen subsidy, not for commercial use. However, food and beverage vendors are pushing for the ability to use more than three subsidized LPG cylinders at a time, which would require amending the 2021 Regulation.
Considerations for such amendments include the scale of business operations and the potential impact on food prices and the cost of living. The financial implications of LPG subsidies, which are public funds, are also significant. For example, a business using five LPG cylinders daily receives a monthly subsidy of RM6,510, while one using ten cylinders receives RM13,020.
Monitoring mechanisms and the enforcement of scheduled controlled goods permits are critical to prevent illegal decanting activities, which involve transferring LPG from subsidized to unsubsidized cylinders for commercial sale at below-market prices. These considerations, along with recommendations and views from stakeholders, will guide potential amendments to the PPKB (Pindaan) 2021, with the OPS GASAK report serving as a crucial reference.