MyGaz dealers question alleged unfair RM40 charge to swap for each Petros’ red cylinder

Chou (seated second right) and Yong (seated centre) with other MyGaz dealers and distributors in a photo after the press conference on Dec 6, 2023.

By Chris Bishop and Karen Bong

KUCHING, Dec 7: MyGaz Sdn Bhd asserts that the alleged requirement by Petroleum Sarawak Berhad (Petros) for its dealers and distributors to pay a premium dealer price of RM40 per unit to exchange yellow gas tanks (liquified petroleum gas or LPG cylinder) for red tanks is unfair and runs counter to the “no additional charges to switch to Petros red cylinders” policy as outlined in the latter’s earlier statement.

Its distributor representative Aaron Chou explained that this was indicated to MyGaz dealers and distributors who have been approached by Petros managers following the passing of the Distribution of Gas (Amendment) Bill 2023 in the recent State Legislative Assembly (DUN) Sitting.

“Why does MyGaz dealers who intend to streamline with the latest gas distribution policy in which the market has been taken over by PETROSNiaga (retail arm of Petros) have to bear additional charges to exchange yellow cylinders for the red ones?

“Without a doubt we are really disappointed with the newly passed Ordinance whereby MyGaz is no longer eligible to sell the 14kg subsidised household gas,” he said during a press conference at a hotel here yesterday (Dec 6).

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

Prior to PETROSNiaga’s appointment as the sole distributor of LPG gas in Sarawak effective Dec 1 this year, it was claimed that MyGaz supplied about 70 per cent of the LPG to the Sarawak market.

More importantly, Chou stressed that the move has significantly affected dealers and distributors throughout Sarawak as there were no clear and official instructions and directions from the Ministry of Utility and Telecommunication (MUT) and Petros/PetrosNiaga.

Chou also raised issues facing consumers on the exchange of the yellow cylinders to red cylinders, in particular for the exchange of more than one gas cylinders as the current instruction by MUT/Petros is one yellow for each red cylinder.

“However, customers who visit our outlets can only exchange for the yellow tongs (as the dealers do not have supply of the red tongs).

“The public are concerned about how they are going to handle the yellow tongs, while we are clueless and directionless at this stage on what to do with the yellow tongs,” he said.

Chou has urged MUT and Petros to seriously consider their plights, clarify these issues and issue an official letter or correspondence on the procedures and steps which dealers and distributors have to take to remain competitive in the market.

Meanwhile, Pending assemblywoman Violet Yong also highlighted the dilemma faced by consumers who brought in their yellow gas cylinders to Petros but were referred back to MyGaz dealers, resulting in them being unable to make the switch to red gas cylinders.

“If the Sarawak government is serious in fully taking over the operation of the LPG business, they have to fully bear all the cost to buy back the yellow tongs or change them to red tongs.

“This is what the Sarawakians and local dealers and distributors want. Make their life easier. Don’t make them bear the cost. It is not fair.

“At this point, everything is very messy without clear direction and most importantly, despite the Sarawak government claiming back all the gas distribution right, there have been no official or proper engagement and dialogue with MyGaz or its dealers in Sarawak,” she said.

Yong asserted that this issue must be addressed immediately because there is a substantial number of yellow cylinders still in the market.

“If this issue goes on ‘ding dong ding dong’ (without solution), consumers could face a shortage of gas later on because there are not enough red tongs in the market at present,” she added.

She pointed out that the Sarawak government cannot treat MyGaz as “transparent” (invisible) as the company has served the LPG market in the State for the past decade and will continue to be in Sarawak.

“They are one of the investors who bring in revenues to Sarawak and pay the sales tax. Furthermore, all the dealers, distributors and stockists are Sarawakians. If the Sarawak government is committed to take over, turn all the yellow tongs to red tongs,” she said.

Yong also pledged to make arrangements with MUT and is considering writing to the Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg to fix a date and time for a proper engagement with all stakeholders to iron out and sort the issues surrounding LPG distribution once and for all. — DayakDaily