(Kuala Lumpur, 4th) Domestic Trade and Cost of Living Minister Datuk Armizan emphasized that the six-month 'OPS GASAK' is aimed at the misuse of subsidized liquefied petroleum gas (LPG), illegal cylinder exchanges, and smuggling activities and does not involve new policies or regulations, nor does it reduce or cancel LPG subsidies.
He stated in a press release on Tuesday that the OPS GASAK is conducted from May 1 to October 31 this year, targeting illegal misuse, smuggling, and use of government-subsidized LPG by large and medium-sized industries.
He mentioned that the enforcement of this operation is based on the '1961 Supply Control Act', '2011 Price Control and Anti-Profiteering Act', and the '2021 Supply Control (Amendment) Regulations'.
He acknowledged that some issues indeed exist during the implementation and enforcement of the '2021 Supply Control (Amendment) Regulations', involving specific commercial sectors, especially the food service industry. Therefore, inspections of food service premises are currently in the promotion and review stage, and the government has not taken legal action against the relevant operators.
Armizan mentioned that once the operation concludes, the OPS GASAK report will be used as a basis for deliberation to assess whether it is necessary to review the applicability of the '2021 Supply Control (Amendment) Regulations'.
"The government has established a technical committee tasked with handling related issues after the initiation of OPS GASAK. The committee is chaired by the Secretary-General of the Domestic Trade Ministry. In addition to the report, suggestions and opinions from various parties will also be considered and eventually submitted to the cabinet for deliberation."
According to the '2021 Supply Control (Amendment) Regulations', operators using more than 42 kilograms of subsidized LPG simultaneously need to apply for a permit for regularly controlled items and must not use subsidized LPG.
He said that subsidized LPG was originally intended for household use, not commercial purposes. However, the regulations allow any operator to use up to 42 kilograms at a time without needing to apply for a permit.
Regarding food service operators hoping to use more than 3 cylinders of subsidized LPG or 42 kilograms, he believes that meeting the operators' demands would require amending the regulations and considering various factors, including the amount of subsidy received by operators and the type and scale of businesses.
"If the request is justified by food prices and people's living costs, then the prices of food sold by the relevant businesses must be included in the study."
"For example, a hawker's plate of chicken rice is priced at RM8, while a restaurant's top price is over RM20; the price difference is significant, yet both benefit from subsidies, which requires reconsideration of its reasonableness."
Armizan mentioned that LPG subsidies are part of public finances and must be carefully allocated. For example, if a business uses 5 cylinders of LPG per day, the monthly subsidy reaches RM6,510; if using 10 cylinders per day, the monthly subsidy is as high as RM13,020.
He reaffirmed the need to strengthen regulatory mechanisms and permit measures, stating that without records and sales caps as a basis for review, it could easily be misused, including cylinder exchanges and resale, or even smuggling abroad.
He said that if regulatory amendments are needed, the parameters of the amendments must be determined, so the OPS GASAK report will become an important foundation for future reviews and improvement in action directions.
He stated in a press release on Tuesday that the OPS GASAK is conducted from May 1 to October 31 this year, targeting illegal misuse, smuggling, and use of government-subsidized LPG by large and medium-sized industries.
He mentioned that the enforcement of this operation is based on the '1961 Supply Control Act', '2011 Price Control and Anti-Profiteering Act', and the '2021 Supply Control (Amendment) Regulations'.
He acknowledged that some issues indeed exist during the implementation and enforcement of the '2021 Supply Control (Amendment) Regulations', involving specific commercial sectors, especially the food service industry. Therefore, inspections of food service premises are currently in the promotion and review stage, and the government has not taken legal action against the relevant operators.
Armizan mentioned that once the operation concludes, the OPS GASAK report will be used as a basis for deliberation to assess whether it is necessary to review the applicability of the '2021 Supply Control (Amendment) Regulations'.
"The government has established a technical committee tasked with handling related issues after the initiation of OPS GASAK. The committee is chaired by the Secretary-General of the Domestic Trade Ministry. In addition to the report, suggestions and opinions from various parties will also be considered and eventually submitted to the cabinet for deliberation."
According to the '2021 Supply Control (Amendment) Regulations', operators using more than 42 kilograms of subsidized LPG simultaneously need to apply for a permit for regularly controlled items and must not use subsidized LPG.
He said that subsidized LPG was originally intended for household use, not commercial purposes. However, the regulations allow any operator to use up to 42 kilograms at a time without needing to apply for a permit.
Regarding food service operators hoping to use more than 3 cylinders of subsidized LPG or 42 kilograms, he believes that meeting the operators' demands would require amending the regulations and considering various factors, including the amount of subsidy received by operators and the type and scale of businesses.
"If the request is justified by food prices and people's living costs, then the prices of food sold by the relevant businesses must be included in the study."
"For example, a hawker's plate of chicken rice is priced at RM8, while a restaurant's top price is over RM20; the price difference is significant, yet both benefit from subsidies, which requires reconsideration of its reasonableness."
Armizan mentioned that LPG subsidies are part of public finances and must be carefully allocated. For example, if a business uses 5 cylinders of LPG per day, the monthly subsidy reaches RM6,510; if using 10 cylinders per day, the monthly subsidy is as high as RM13,020.
He reaffirmed the need to strengthen regulatory mechanisms and permit measures, stating that without records and sales caps as a basis for review, it could easily be misused, including cylinder exchanges and resale, or even smuggling abroad.
He said that if regulatory amendments are needed, the parameters of the amendments must be determined, so the OPS GASAK report will become an important foundation for future reviews and improvement in action directions.