Chong urges S’wak govt not to terminate MyGaz LPG distribution licence

KUCHING (Nov 25): DAP Sarawak chairman Chong Chieng Jen is urging the state government not to terminate the distribution licence of MyGaz to allow Petros Niaga to monopolise the liquefied petroleum gas (LPG) distribution business in the state starting Dec 1.

He said the sudden announcement not only immediately ceased all MyGaz’s business in Sarawak, but also put an abrupt stop to the businesses of all of its retailers and distributors in the state and its employees.

“In the long-run, we all know that monopoly business is not good for consumers.  Without any competition, companies will have no incentive to provide the best service at the lowest possible price to consumers,” he said in a statement today.

According to him again, the creation of the monopoly in LPG distribution business in the state may likely subject Sarawakians to pay more for their LPG consumption in future instead of enjoying any benefit.

He recalled that when the gas distribution power was agreed to be devolved from the federal government to the state back in 2019, it was intended to result in more efficient planning and implementation of the LPG gas distribution policy to bring more benefits to Sarawakians.

“Few years have passed since the devolution of power. Yet, we still do not see any benefit to the people of Sarawak arising from this devolution of power.

“There is no reduction in the price of LPG for consumers and there is also no reduction in the delivery costs to consumers,” said Chong.

On Nov 21, Minister of Utilities and Telecommunications Dato Sri Julaihi Narawi announced in the Sarawak Legislative Assembly that the state government has decided not to renew the LPG distribution licence of another company, which expires at the end of this month.

“With the non-renewal of the distribution of gas licence, Petros Niaga will control 100 per cent of the LPG market from December 1,” said Julaihi when winding the debate on the Distribution of Gas (Amendment) Bill 2023.

Julaihi was also quoted as saying that previously, Petros Niaga controlled 68 per cent of the LPG market in Sarawak and “another company” — which he did not name — controlled 32 per cent.

On Nov 22, MyGaz Sdn Bhd East Malaysia general manager Pakamard Boonsawat @ Becky said thousands of Sarawakians might lose their income and businesses following the announcement that Petros Niaga will be the sole distributor of LPG in the state starting Dec 1.

She said following the announcement, MyGaz will no longer be able to sell and distribute household 14kg LPG gas cylinders, as the Sarawak Ministry of Utility and Telecommunication will not be renewing their LPG distribution licence for subsidised products.