THE Sarawak government said the price of household liquefied petroleum gas (LPG) – the “cooking gas” – could be further discounted if the cylinder manufacturer could lower the cost of producing the cylinders.

Premier Abang Johari Openg told the state assembly that even though household LPG is already subsidised by up to 50% by the federal government, the state had achieved a greater share of revenue from oil and gas produced in Sarawak through state sales tax (SST).

Earlier, Deputy Premier Douglas Uggah had told the assembly that the SST collected from crude oil and liquefied natural gas was RM11.01 billion and “has become the major contributor” to the state’s revenue.

Sarawak might have control on the distribution of gas, including LPG, under the Distribution of Gas Ordinance but LPG is a controlled item and the price of LPG is fixed for the whole of Malaysia under the Control of Supplies Act 1961.

The current controlled price for a 14kg LPG-filled cylinder is RM26.60.

“The Gabungan Parti Sarawak government will continue to protect the interests of gas consumers through the Utilities and Telecommunications Ministry to ensure security of supply and equitable price throughout Sarawak,” Abang Johari said.

To mitigate the rising cost of living, especially food prices, the premier said he “will introduce a discount on electricity tariff” to food producers and retailers, including coffee shops, restaurants, and other food and beverages industries in order to reduce their cost of doing business.

“Therefore, I expect it will mitigate the market price of food. The state government will intervene within its power and means to cushion the impact of the rising cost of living on the rakyat.

“(The) Sarawak government takes note of the rising prices of food, which affects cost of living. All these are due to the current geopolitical tension that have led to imported inflation and the ringgit’s performance against US dollar, which had declined 0.7% in the first quarter of this year,” he said.

Abang Johari said Malaysia’s weakening currency will increase import prices, burdening both consumers and importers.

“As Malaysia is a net importer of food, the imported inflation has caused higher food prices domestically. Therefore, most of this is beyond the Sarawak government’s control.” – May 26, 2022.