Simple process of transferring gas leads to LPG subsidy abuse

KUALA LUMPUR: The simple process of transferring liquefied petroleum gas (LPG) into gas cylinders for sale has been identified as one of the reasons which encouraged abuse of the subsidised fuel.
According to Domestic Trade, Cooperatives and Consumer Affairs Ministry enforcement division director Mohd Roslan Mahayuddin, LPG from subsidised cylinders could easily be transferred into industrial cylinders without requiring the use of sophisticated technology or equipment.
"Checks have found the parties involved in this illegal business will place hot water on the subsidised gas cylinders which will produce high pressure, and put ice cubes on the industrial cylinders to create low pressure.
"The hot water will produce steam which will be sucked into the low-pressure industrial cylinders," he told Bernama here today.
Mohd Roslan said the organised syndicates could carry out this activity anywhere such as in forests, oil palm plantations and cemeteries.
He said the subsidised gas filled in 12kg and 14kg gas cylinders were transferred into 50kg LPG industrial gas cylinders.
After the transfer, the syndicates would sell the LPG in the industrial gas cylinders to industries at market price and these cylinders were widely distributed in Peninsular Malaysia, he added.
He said another form of abuse was smuggling LPG to neighbouring countries, especially Indonesia and the activities were often concentrated in the east coast of Sabah.
In Tawau district, numerous smuggled LPG have been found in Pulau Sebatik, Nunukan and areas near Indonesia, and the ministry has imposed a ban on LPG sale to non-certified groups effective Jan 15.
"Only Malaysian citizens, permanent residents, legal foreign workers and individuals authorised by the guards are allowed to buy LPG and all sales transactions must be recorded," said Mohd Roslan.
In the meantime, Roslan said the ministry would revoke the licence of errant companies to prevent them from continuing to operate.
He said the ministry had also established an intelligence unit in the enforcement division over the past year to track fraudulent syndicates.
In addition, various attempts have been made, including collaborating with the police, Malaysian Anti-Corruption Commission, National Revenue Recovery Enforcement Team set up by the Attorney-General's Chambers, Malaysian Maritime Enforcement Agency (MMEA) and the marine police in Sabah to tackle LPG fraud and smuggling to neighbouring countries. — Bernama