The importation, distribution and retail of liquified petroleum gas in the State of Sarawak will be regulated by the State Government of Sarawak commencing 1 June 2021.
Under the Distribution of Gas Ordinance, 2016 (Chapter 72) of Sarawak ("Ordinance"), which came into operation on 1 July 2018, various activities relating to the importation, distribution and retail of gas, including liquified petroleum gas, in the State of Sarawak will require a licence issued by the Director of Gas Distribution under the Ordinance.
To this end, the Federal Government of Malaysia has gazetted the Notification of Exemption (Amendment) 2021 ("Amendment Notification") and the Control of Supplies (Exemption) Order 2021 ("Exemption Order"), both of which will come into operation on 1 June 2021.
The Amendment Notification exempts the business of marketing or distributing natural gas and liquified petroleum gas in the State of Sarawak from the licensing requirements under sections 6(1) or 6(3) of the Petroleum Development Act 1974.
The Exemption Order exempts any licensee for the distribution and importation or retail of liquified petroleum gas under the Ordinance ("licensee") from the licensing requirements under regulation 3 of the Control of Supplies Regulations 1974 subject to the following conditions:
- the licensee ensures that the supply of liquefied petroleum gas in Sarawak is sufficient at all times;
- the licensee ensures that the supply of liquefied petroleum gas which is distributed, imported or retailed by the licensee is only to be marketed in Sarawak unless the prior written permission is obtained from the Minister of Domestic Trade and Consumer Affairs;
- the licensee ensures that the subsidised price of liquefied petroleum gas is in accordance with the price determined by the Controller under the Price Control and Anti-Profiteering Act 2011;
- the licensee obtains the supply of subsidised liquefied petroleum gas from a supplier as determined by the Ministry of Finance; and
- any other condition imposed by the Minister of Domestic Trade and Consumer Affairs by notice.
Originally published 31 May 2021
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