No issue of job loss with Petros Niaga’s appointment

THE appointment of Petros Niaga Sdn Bhd as the sole distributor for subsidised liquefied petroleum gas (LPG) in Sarawak, effective from Dec 1, will not have an adverse impact on existing suppliers and their employees, according to Datuk Seri Julaihi Narawi.

The Minister for Utility and Telecommunication stressed that Petros Niaga, with its network of 65 dealers and 280 sub-dealers, will continue to provide employment opportunities for thousands of Sarawakians.

He clarified that the 16 dealers currently under MYGAZ can seamlessly transition to Petros Niaga for subsidised LPG supply, eliminating concerns raised by certain parties regarding potential job losses.

Presently, Petros Niaga commands 68 per cent of the LPG market in the state, while MYGAZ Sdn Bhd holds the remaining 32 per cent.

The licence for MYGAZ is set to expire at the end of the month, prompting the Sarawak government’s decision not to renew its LPG distribution licence. However, the non-subsidised LPG licence for MYGAZ remains valid until June 29, 2024.

Julaihi said this during his winding-up speech at the State Legislative Assembly sitting today (Nov 27).

He added that Petros Niaga, a subsidiary of Petroleum Sarawak Bhd (Petros), is a Malaysian company based in Sarawak. In contrast, MYGAZ is a subsidiary of a Thai LPG company, which acquired the Shell LPG brand from Shell Timur Sdn Bhd in 2013.

“So, it’s time for our own local company to run the business; don’t let them (local companies) tengok sahaja (look only),” he said.

Julaihi expressed confidence that Petros Niaga, being a local entity, will ensure an ample supply of subsidised LPG, maintain high service standards, and contribute to the economic wellbeing of Sarawak.