SARAWAK DAP chairman Chong Chieng Jen has accused the state government of abusing its power and “ripping Sarawakians off to feed its government-linked company” over the sale and distribution of 14kg liquefied petroleum gas (LPG) cylinders in the state.

The state government, which holds power on gas distribution, including the renewal of distribution licence, has refused to renew the distribution licence of the only other LPG distributor, MyGaz, which expires at the end of next month. This paves the way for Petros Niaga, the marketing arm of state-owned petroleum company Petros, to monopolise the market.

“There is absolutely no basis for the state government to create this monopoly over the service,” Chong said.

MyGaz’s current market share is about 32% with the remaining 68% Petros Niaga’s.

Chong said by refusing to renew MyGaz’s distribution licence, the state government is “literally killing off competition in this distribution industry and allowing Petros Niaga to monopolise the industry”.

“The state government is able to kill off MyGaz’s distribution licence because the power on distribution of gas has been devolved to the state government.

“Surely this is a clear abuse of such power to the detriment of the consumers in Sarawak,” he said.

Chong, the former deputy domestic trade and consumer affairs minister in the Pakatan Harapan administration under former prime minister Dr Mahathir Mohamad, also poured scorn on Utility and Telecommunication Minister Julaihi Narawi’s claim that MyGaz still has the right to supply non-subsidised LPG in the state.

He said that statement was absurd when all consumers in Sarawak are purchasing the subsidised LPG and only a handful of industrial players are using non-subsidised LPG.

Chong added that such a claim did not address the detrimental effects of the monopoly created by the state government.

“As the LPG distribution rights involve the provision of an essential service to the people of Sarawak, all the more the state government should encourage more competition among such service providers rather than killing off existing competitors and allowing only one service provider to monopolise such an essential service.”

MyGaz’s East Malaysia general manager Pakamard Boonsawat last week claimed 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 December 1.

Julaihi, however, disputed that claim.

He said there is no issue of job losses, which Chong had also claimed.

Julaihi said MyGaz’s 16 dealers could switch to become Petros Niaga dealers. – November 28, 2023.