Julaihi allays concerns about monopoly in subsidised gas distribution

KUCHING (Jan 30): Utilities and Telecommunications Minister Dato Sri Julaihi Narawi has affirmed that a potential monopoly in the distribution of subsidised liquefied petroleum gas (LPG) has never transpired in Sarawak.

In response to concerns regarding such issue, he said the distribution of subsidised LPG is effectively managed by PetrosNiaga, a joint venture between Petroleum Sarawak Berhad (Petros) and Petronas, with shareholdings of 51 per cent and 49 per cent respectively.

“Such an issue will never happen in Sarawak because here in the state we have collaborative efforts in place. We have an extensive network supporting the distribution process, with 65 authorised distributors appointed across the state.

“They are also complemented by nearly 280 sub-distributor companies and this comprehensive structure fosters cooperation among various stakeholders, particularly in ensuring the smooth distribution of red gas cylinder barrels by PetrosNiaga throughout Sarawak,” he stressed in his keynote address for his ministry’s gathering at a hotel here today.

Hence, he urged all parties who are concerned to understand how the distribution process works as there might be parties who did not understand it, probably because of wrong information.

He acknowledged the state government was aware of such concern to avoid monopoly in the distribution of subsidised LPG while practising good cooperation.

“Distribution of subsidised LPG in Sarawak will involve many parties, not only PetrosNiaga. Many parties, especially Malaysians in Sarawak, and I believe that when many parties are involved in the distribution of LPG gas, it symbolises good cooperation, rather than a monopoly.”

Addressing a recent incident of a shortage of subsidised LPG supply in Sibu, Julaihi said he had directed Petros to conduct a thorough investigation into the matter, particularly in rural or remote areas.

He emphasised the importance of preventing any elements of sabotage or disruptions that could lead to market shortages, reassuring the public that PetrosNiaga has ample red cylinder barrels to meet consumer needs throughout Sarawak.

“That case only happened in Sibu and not at any other place. Even in nearby Kapit such thing did not happen,” he said.

Meanwhile during the same event, Julaihi also discussed the role of Petros as the sole gas aggregator in Sarawak as he urged the company to formulate effective strategies for the acquisition, distribution, and supply of natural gas, aligning with the objectives outlined in the ‘Sarawak Gas Roadmap (SGR)’.

Additionally, he emphasised the need for Petros to focus on developing gas detection infrastructure networks, including main gas pipelines and virtual pipelines, in accordance with the implementation schedule.

“We don’t want any elements of sabotage and so on to occur, causing a shortage of cylinders in the market. This is because I know that PetrosNiaga has enough red cylinder barrels for the needs of consumers throughout Sarawak,” he said.

He encouraged transparency in addressing any issues and called for a detailed report to ensure prompt resolution and prevent future occurrences.

Among those attending the gathering were his deputies Datuk Liwan Lagang and Datuk Dr Abdul Rahman Junaidi and various heads of departments under his ministry.