Julaihi: PetrosNiaga’s appointment as sole LPG distributor won’t put MyGaz workers’ livelihoods at risk

KUCHING (Nov 27): The livelihoods of Sarawakians working under MyGaz Sdn Bhd businesses would not be at risk following the appointment of PetrosNiaga as the sole distributor of liquified petroleum gas (LPG) statewide, said Dato Sri Julaihi Narawi.

The Utility and Telecommunication Minister said there is no issue of job losses as claimed by Democratic Action Party (DAP) Sarawak chairman Chong Chieng Jen.

Julaihi pointed out the change of LPG distributorship is nothing new for MyGaz as it took over the operations from Shell in 2013.

He said state-owned PetrosNiaga can provide more job opportunities to local Sarawakians as it has more dealers and sub-dealer companies than MyGaz.

“My ministry is very confident that PetrosNiaga, with a strength of 65 dealers and 280 sub-dealers, will provide job opportunities to thousands of Sarawakians.

“A total of 16 dealers under MYGaz Sdn Bhd, at any time, can switch to PetrosNiaga to obtain a subsidised LPG Gas supply.

“With this, there is no issue of job loss as claimed by related parties,” he stressed in his winding-up speech at the State Legislative Assembly (DUN) today.

At a press conference later, Julaihi said the ministry’s move to appoint PetrosNiaga as the state’s sole distributor is vital to empower the development of the local company.

He pointed out MyGaz is a subsidiary company from Thailand.

“The Sarawak Ministry of Utility and Telecommunication has made an important decision regarding the distribution of subsidised LPG gas in Sarawak. Currently, there are two subsidised LPG supplier companies, namely PetrosNiaga controlling 68 per cent of the market throughout Sarawak, while 32 per cent is controlled by MyGaz Sdn Bhd.

“PetrosNiaga is a local company owned by Petros with 51 per cent equity and 49 per cent owned by Petronas Dagangan Berhad, 100 per cent owned by Malaysia.

“While MyGaz Sdn Bhd is a subsidiary of Siam Gas, which is a supplier of Liquid Petroleum Gas (LPG) from Thailand. We should be supportive of our Malaysian company,” he said.

Julaihi said the move would enhance the distribution of LPG gas cylinders in the state.

“The ministry is now making commercial arrangements to regulate and enforce subsidised LPG gas distribution activities more effectively and efficiently in Sarawak,” he added.

In thanking MyGaz for its contributions, Julaihi pointed out the move to appoint PetrosNiaga had been discussed with the company before the enactment of the new Distribution of Gas Ordinance (Chapter 72) Bill.

“They (MyGaz) already knew about this because engagement had been made months before the tabling of this Bill.

“However, a non-subsidised LPG license for MyGaz Sdn Bhd is still valid until June 29, 2024. This means that My Gaz Bhd is still running the LPG business without subsidy in Sarawak,” he said.

Julaihi also said Petros, as a sole distributor, would encourage the usage of gas in the state by up to 30 per cent, which is in line with the Sarawak Gas Roadmap.

He said over 700,000 gas cylinders would be distributed throughout the state from Dec 1, 2023.

Last Wednesday (Nov 22), MyGaz East Malaysia general manager Pakamard Boonsawat @ Becky claimed its Sarawak contractors, suppliers, transporters, and dealers may lose their jobs due to the non-renewal of the company’s distribution licence.

On Saturday, Chong had urged the state government not to terminate MyGaz’s licence as he claimed this would bring an abrupt end to the business of its retailers and distributors in Sarawak.