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THE government has launched a nationwide enforcement campaign, (Operation Ccooking Gas) (‘Operasi Gas Memasak’ or Ops Gasak), which runs from 1 May to 31 October 2025, to crack down on illegal activities surrounding the use of subsidised liquefied petroleum gas (LPG).
The focus is on tackling unauthorised decanting, smuggling, and improper use of subsidised gas in medium- to large-scale industries.
The legal basis for Ops Gasak lies in the Control of Supplies Act 1961, the Price Control and Anti-Profiteering Act 2011, and the Control of Supplies (Amendment) Regulations 2021, known as PPKB (Amendment) 2021.
“There are no new policies or regulations under OPS GASAK, nor any subsidy cuts or abolishment as alleged by certain parties,” said Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living.
The minister acknowledged that issues had arisen during enforcement, especially in relation to food and beverage vendors affected by PPKB (Amendment) 2021.
As such, inspections on food and beverage premises are currently conducted under advocacy and compliance review, with no legal action taken against these businesses.
Once the campaign concludes, a comprehensive report will serve as a foundation for reviewing the suitability of the current LPG-related regulations. A technical committee, chaired by the Secretary-General of the Ministry, was formed at the outset of Ops Gasak to oversee this process.
Incorporating feedback from various stakeholders, the committee will make recommendations to the Cabinet.
The amendments under the previous administration in 2021 introduced a regulatory threshold: any usage of subsidised LPG exceeding 42kg (equivalent to more than three 14kg cylinders) at any one time requires a permit and disqualifies the user from utilising subsidised LPG.
This policy, effective since 15 October 2021, was intended to ensure subsidies remain strictly for household use, not commercial gain. However, concerns have been raised that the limit impacts food vendors, potentially raising food prices due to higher business costs.
“The LPG subsidy is fundamentally meant for household kitchens. It is a consumption subsidy, not one for trade or commercial operations,” said Datuk Armizan.
Nevertheless, current regulations allow up to 42kg of usage without a permit. Many food and beverage businesses, particularly those operating on a larger scale, argue that this cap is insufficient. Addressing their needs would require legislative amendments.
Considerations in any regulatory review must include the number of subsidised cylinders allocated per business, as well as the type and scale of the operation – from micro-enterprises to larger commercial players.
Price disparities in food items also warrant attention; for instance, a plate of chicken rice may cost RM8 at one outlet and over RM20 at another, despite both benefiting from the same public subsidy.
The minister also stressed the fiscal implications, noting that one business using five LPG cylinders daily would receive RM6,510 in subsidies monthly, based on a RM43.40 subsidy per cylinder. For a business using 10 cylinders daily, the monthly subsidy value rises to RM13,020.
Effective monitoring and control mechanisms are vital, he added, particularly to address risks like illegal decanting – the unauthorised transfer of subsidised LPG into non-subsidised cylinders for illicit commercial resale or cross-border smuggling.
All of these elements – stakeholder feedback, fiscal considerations, compliance issues, and illegal activity risks – will shape whether and how the PPKB (Amendment) 2021 should be revised.
“Should amendment be the answer, it will be essential to determine the parameters of such changes,” said the minister. “Therefore, the OPS GASAK report will be critical in guiding the direction of any improvements to the current regulation.” - June 3, 2025
