Press Digest - LPG subsidies 'robbed' by businesses

THE government lost hundreds of millions of ringgit a year due to the uncontrolled usage of subsidised liquefied petroleum gas (LPG) meant for domestic consumers ending up in restaurant kitchens, reported Mingguan Malaysia.
The Malay-language daily reported that many restaurants had 'robbed' customers by using the subsidised LPG in their businesses while at the same time charging excessively for the food and drinks they served.
Currently, the government has subsidised a total of RM1.44 per kilogram of LPG, while a gas tank weighing 14-kilogram would receive a subsidy of RM20.16.
"The subsidy should have been channelled to the people, and not be used by businesses which would then increase their prices and profit.
"Such a thing should not have happened. The Federation of Malaysian Consumer Associations (FOMCA) had stated that more than half of subsidised LPG usage was by businesses," the paper said in a special report.
The report said the household usage of a 14 kilogram gas tank is around one and a half months to two months, but a food outlet would consume more than eight gas tanks per month.
Based on a rough calculation, the traders were the group receiving the most from the subsidy although it was targeted for domestic usage.
The report said that a total of RM1.9 billion subsidies had been allocated for LPG in 2015, but more than half of it was used by those who were unqualified.