Kuala lumpur: The Ministry of Domestic Trade and Cost of Living (KPDN) is intensifying enforcement efforts against the misappropriation of subsidised liquefied petroleum gas (LPG) through “decanting,” which is the process of illegally transferring LPG from subsidised cylinders to commercial cylinders. This practice has been identified as one of the main causes of subsidy leakage.
According to BERNAMA News Agency, Deputy Minister Datuk Dr Fuziah Salleh stated that the ministry is taking the issue seriously. Enforcement operations under the ‘Operasi Gas Memasak’ (Ops Gasak) initiative are being ramped up to prevent irresponsible parties from exploiting government subsidies. The focus of Ops Gasak on decanting follows the discovery of several cases involving individuals or entities posing as legitimate businesses or wholesalers, but who divert subsidised LPG to industrial use.
Dr Fuziah explained 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.
A recent case in Johor revealed decanting activities carried out under the guise of legitimate LPG wholesale operations. The individuals involved have been arrested and found to have committed offences under the Supply Control Act 1961, leading to strict enforcement actions.
Dr Fuziah added that Ops Gasak is currently being implemented nationwide, except in Sarawak, where LPG enforcement falls under the state’s own ordinance and jurisdiction. The initiative aims to ensure that subsidised LPG is used solely by eligible households and micro-entrepreneurs, in line with the government’s targeted subsidy policy.
She noted that although the law is robust, there was misuse by wholesalers supplying subsidised LPG to unqualified parties such as industries. Regulations are in place to protect the subsidy, but some parties still abuse it. The wholesaler committing the offence will likely be held responsible.
Previously, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced that Ops Gasak would run from May 1 to October 31. The initiative is part of the broader Kita Gempur movement, launched on October 19, to combat the manipulation and leakage of subsidised goods.