Ruling on LPG distribution will affect thousands in Sarawak

KOTA KINABALU (Nov 22): Thousands of Sarawakians might lose their income and businesses following the Ministry of Utility and Telecommunications (MUT) Sarawak’s announcement that Petros Niaga will be the sole distributor of LPG in the state starting Dec 1.

MyGaz Sdn Bhd, the other existing major liquified petroleum gas (LPG) supplier in Sarawak, will be greatly affected once this ruling takes effect, said its East Malaysia general manager Pakamard Boonsawat @ Becky.

She said following the announcement, MyGaz will no longer be able to sell and distribute household 14kg LPG gas cylinders, as the Sarawak MUT will not be renewing their LPG distribution licence for subsidised products.

The announcement was made by the MUT minister of Sarawak, Datuk Seri Julaihi Narawi during the Sarawak Legislative Assembly on Nov 21.

Becky said this new ruling came as a shock as they understood that Malaysia was a fair and free trade country.

Malaysia, she said, was also a member of ASEAN which promotes fair and free trade, especially among member countries.

After the announcement, Becky said their contractors, suppliers, transporters and dealers had been calling them to seek a solution.

“We have no choice but to abide by the Sarawak government’s instructions,” she said at a press conference, here on Wednesday.

She said having operated in Sabah, Sarawak and parts of the peninsula for over 10 years, MyGaz has a strong client base and regular contractors.

According to Becky, if more than one operating LPG companies, Sarawakian consumers will benefit as they are market competitions.

“But now, customers will no longer have the right to choose once this ruling takes effect. Monopolised markets leave consumers with no option but to purchase from just one supplier,” she said, adding that dealers and contractors will also be affected in the same negative manner.

Becky said they have been trying to get an appointment with the Sarawak government officials with the hope of discussing this matter and to appeal for leniency, but to no avail.

On this, Becky said that the action of not allowing fair and free trade such as this will seriously hurt foreign investment reputation and future investment of opportunity.

During a question-and-answer session in the Dewan Rakyat on May 23, Prime Minister Datuk Seri Anwar Ibrahim had said that the federal government was looking at ways to break monopolies within industries for the benefit of consumers.

He had said that competition must be encouraged instead to enable lower prices and ensure consumers are not burdened by high living expenses.

“We agreed with what the PM suggested and the action of only allowing a sole distributor of LPG is an act of monopoly,” said Becky.

Also present was MyGaz Finance Manager Sarintip Kalaseerom.