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New policy soon on LPG cylinders
Published on: Tuesday, May 17, 2016

Tawau: A new policy to allow the supply of liquefied petroleum gas (LPG) cylinders to Indonesia will be announced to address the leakage of subsidised goods in the border areas which is still occurring.

Domestic Trade, Co-operatives and Consumerism Minister Dato' Seri Hamzah Zainudin said the new policy would be different from existing policies to determine its effectiveness.

However, the implementation would take some time because it involves the use of different LPG cylinders for the quota of neighbouring countries and for local use.

"When I announce it, I do not want to see the cylinders sold by our people to be available there (neighbouring countries), "he told a press conference after a working visit to Pulau Sebatik, Monday. The island off Tawau is shared by Indonesia and Malaysia.

Accompanying him was Kalabakan MP Datuk Seri Abdul Ghapur Salleh and Sebatik Assemblyman Datuk Abdul Muis Picho and senior officials from the ministry.


"Hopefully we can do it but do not misuse the subsidy we have for the people and parties found abusing the subsidy (for profit), we will brought to justice," he said.

Asked about the need to allow the supply of LPG to neighbouring countries, he said the matter related to the economy to ensure the return of profits to local communities and gas industry players in the country.

According to him, there is no problem selling to neighbouring countries in the future. What is important is the sales price must be based on market price rather than subsidised price that can only be enjoyed by locals.

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