Thousands of jobs at risk with Sarawak's change to LPG sole distributorship

KOTA KINABALU: The livelihoods of thousands could be at risk as Sarawak's Utility Ministry has announced that Petros Niaga will be the sole distributor of liquefied petroleum gas (LPG) in the state starting Dec 1.

MyGaz Sdn Bhd, an existing major liquefied petroleum gas (LPG) supplier, said they would be affected once this ruling takes effect

Its East Malaysia general manager Pakamard Boonsawat @ Becky in a press conference here on Wednesday (Nov 22) said the company would no longer be able to sell and distribute gas cylinders to households as the ministry will not be renewing their LPG distribution licence for subsidised products.

The announcement was made by state Utilities and Telecommunications Minister Datuk Seri Julaihi Narawi when winding up the debate on the Distribution of Gas (Amendment) Bill 2023 in the Sarawak Legislative Assembly on Nov 21.

He had said that with the non-renewal of the distribution of gas licence, Petros Niaga will control 100%% of the LPG market from December 1. MyGaz cylinders are coloured yellow while Petros cylinders are red.

Becky said that the company's contractors, suppliers, transporters and dealers are in a panic, calling them non-stop asking for a solution.

"We have no choice but to abide by the Sarawak government's instructions," said Becky.

She added that with more than one LPG supplier operating, consumers would actually benefit from the competition.

"Customers will no longer have the right to choose once this ruling takes effect. Monopolised markets leave consumers with no other option," Becky said.

She said they had been trying to meet Sarawak government officials to discuss the matter but to no avail.

During Question Time 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.