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THE Ministry of Domestic Trade and Cost of Living (KPDN) has firmly denied claims that the government intends to abolish subsidies for liquefied petroleum gas (LPG), calling such assertions misleading and inaccurate.
“The mandate given to the Ministry is to tackle leakages involving misuse or smuggling – never to withdraw, let alone abolish, this subsidy,” said Minister Datuk Armizan Mohd Ali in the Dewan Rakyat today.
He was responding to a supplementary question from Bentong MP Young Syefura Othman regarding speculation that the LPG subsidy might be withdrawn.
Armizan clarified that the government remains committed to providing subsidised LPG cylinders for domestic use.
“This is a consumption-based subsidy, a rakyat's kitchen subsidy,” he said.
At the same time, he acknowledged the needs of micro and small food and beverage businesses that rely on subsidised LPG.
“The government remains open to allowing these micro and small-scale businesses to continue accessing the subsidy,” he added.
However, he cautioned that if businesses cite the subsidy as justification for providing affordable meals, they must also ensure their prices remain accessible.
“If their reason is to offer affordable pricing, then we hope their food and beverage prices reflect rakyat-friendly levels and not premium rates,” Armizan said.
To strengthen policy enforcement, the minister announced that amendments will be made to the Supply Control Regulations (PPKB) 2021 to provide legal clarity and introduce a robust control mechanism.
“The government’s commitment will be translated through these regulatory amendments to ensure better oversight and enforcement,” he added. - July 22, 2025
