KUCHING: The Sarawak government has been urged not to terminate the gas distribution licence of MyGaz and allow Petros Niaga to monopolise the liquefied petroleum gas (LPG) gas distribution business in Sarawak.
Democratic Action Party (DAP) Sarawak chairman Chong Chieng Jen made the call in response to the announcement that the state government will not renew the gas distribution licence of MyGaz starting Dec 1.
He said the decision not only immediately ceased all MyGaz’s business in Sarawak, but also put an abrupt stop to the businesses of all MyGaz’s retailers and distributors in Sarawak and their employees.
“In the long-run, we all know that monopoly business is not good for consumers. Without any competition, companies will have no incentive to provide the best service at the lowest possible price to consumers,” he said in a statement.
Chong explained that when gas distribution power was agreed to be devolved from the federal government to the state government back in 2019, it was intended that it will result in more efficient planning and implementation of the LPG gas distribution policy in the state and thus bring more benefits to the people of Sarawak.
He said the way things have turned out people of Sarawak are likely to be subject to pay more for their LPG consumption in future.
On Nov 21 during the Sarawak Legislative Assembly (DUN) sitting, Minister of Utility and Telecommunication Datuk Seri Julaihi Narawi announced that Petros Niaga Sdn Bhd, a wholly-owned subsidiary of Petroleum Sarawak Berhad (Petros), will be the exclusive distributor of liquefied petroleum gas (LPG) in Sarawak, starting Dec 1.
The decision comes after the Sarawak government opted not to renew the LPG distribution licence of another company.
“Presently, Petros Niaga controls 68 per cent of the LPG market in Sarawak, with another company holding the remaining 32 per cent, whose licence is set to expire at the end of the month.
“With the state government’s decision not to renew the licence, Petros Niaga will have full control of the LPG market in Sarawak, effective next month,” he said when winding up the debate on the Distribution of Gas (Amendment) Bill 2023.
