LPG distribution: MyGaz dealers, distributors call for dialogue with S’wak govt

KUCHING (Dec 6): Dealers and distributors of MyGaz Sdn Bhd (MyGaz) have called on the Sarawak Ministry of Utility and Telecommunication and Petrosniaga Sdn Bhd (Petrosniaga) for a dialogue session to address issues concerning the distribution of liquefied petroleum gas (LPG) in the state.

Representative for the dealers and distributors, Aaron Chuo, said since news broke that the distribution license for MyGaz will not be renewed following the appointment of Petrosniaga as the sole LPG distributor in the state, they have been at a loss on what is their next course of action.

“We are very disappointed to learn that following the passing of the Distribution of Gas (Amendment) Bill 2023 in the recent State Legislative Assembly (DUN), MyGaz is no longer eligible to sell LPG in Sarawak.

“The decision has affected us and until today, there is no clear direction on what we should do with the yellow gas cylinders.

“We have not received any official statement from the government on what would be the next step for us. The only information we have from Petrosniaga is their statement which was published by the media,” he told a press conference today.

MyGaz is the Malaysian subsidiary of Thailand’s Siamgas and Petrochemical Co Ltd. It operates the LPG business in Malaysia following the acquisition of Shell LPG from Shell Timor Sdn Bhd in 2013.

In Sarawak, subsidised gas cylinder brands are differentiated by colours namely yellow (MyGaz), green (Petronas) and red (Petros).

During the press conference, Chuo also hoped that Petrosniaga, the retail LPG arm for Petroleum Sarawak Berhad (Petros), would be able to clarify its recent statement concerning the exchange of yellow gas cylinders to that of Petros’ red and Petronas’ green ones.

“In their statement released through the media, Petrosniaga said there will be no additional charges when the public exchange their gas cylinders to Petros’ red colored ones.

“Based on my understanding of this, the public can exchange one yellow gas cylinder to a red one but they (Petrosniaga) never mentioned if customers have more than one gas cylinders, such as five, would they be able to exchange for five red gas cylinders?” he questioned.

He also said that MyGaz dealers were approached by sales managers from Petros when the news broke of Petros’ monopoly to distribute LPG statewide.

“They told us that we can exchange our yellow gas cylinders, but we would have to pay a premium dealer price of RM40 per cylinder.

“This is obviously against what was published in the newspapers where the statement said that there would be no additional charges when switching to Petros LPG cylinders.

“It is unfair of Petros to make us dealers have to pay RM40 per cylinder and they did not even give us an official letter on this.

“We therefore urge the Ministry of Utility and Telecommunication and Petrosniaga to have an official dialogue with us and also to issue an official statement on how to handle the exchange of the gas cylinder,” said Chuo.

Meanwhile, Pending assemblywoman Violet Yong said the Sarawak government ought to come up with a clear directive for the MyGaz dealers and distributors rather than leaving them in the lurch.

“There has been no proper dialogue with MyGaz and their respective dealers which is very unwarranted and should not have happened in the first place,” she said, adding that she believed that there were at least one million gas cylinders distributed throughout the state.

“But the Gabungan Parti Sarawak (GPS) government through the Ministry of Utility and Telecommunication have not issued any directive on what should be done to the yellow gas cylinders.

“Furthermore, Petros had asked them (dealers) to pay RM40 per cylinder. This is not in tandem with what had been said,” she said.

Yong said what the MyGaz dealers and distributors want is simply for the government to bear the cost and to paint the yellow gas cylinders to red.

“There should not be any cost charged to the dealers. Since the government wants to take back everything, then they should be responsible for this,” she said.

Yong said she will discuss and make arrangements with the Ministry of Utility and Telecommunication to address the issue faced by the MyGaz dealers and distributors.

“I will try my best to write to the ministry of even the Premier to fix a date to meet this group to help iron out the issue once and for all,” she said.

Also present at the press conference was Siamgas and Petrochemicals Public Company Ltd overseas sales manager Nanasaka Ariyapoolpong.

On Nov 21, Julaihi announced during the DUN Sitting 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.

The following day, 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.

On Nov 27, Julaihi assured that the livelihood of Sarawakians working under MyGaz businesses would not be at risk following the appointment of Petrosniaga as the sole LPG distributor in the state.

“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 said in his winding-up speech at the DUN Sitting.

Later at a press conference, he said the ministry’s move to appoint Petrosniaga as the state’s sole distributor was vital to empower the development of the local company.

He also said that there are two subsidised LPG supplier companies, namely Petrosniaga which controlled 68 per cent of the market throughout Sarawak, while 32 per cent is controlled by MyGaz.

“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.