KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) Kuala Lumpur branch seized 50,000 kilogrammes (kg) of liquefied petroleum gas (LPG), worth RM400,000, during a raid at a wholesaler’s premises in Sentul, early this morning.
Its director Mohd Sabri Seman said the raid followed a month-long intelligence operation. The investigation found that the operation had been ongoing for the past two years, involving a decanting process, where subsidised LPG from 12 kg and 14 kg cylinders was transferred into 50 kg industrial cylinders.
These cylinders were then sold to businesses at a lower price than market rates, between RM180 and RM240 per unit.
Mohd Sabri said that licensed wholesalers, some with 30 years in the industry, were making significant profits, as their cost to produce a 50 kg LPG cylinder with subsidised LPG was about RM100 per unit.
“KPDN is committed to enforcing strict regulations to prevent the misuse of subsidised LPG, which is meant to benefit the public, but has been exploited,” he said at the raid site today.
Mohd Sabri said KPDN is still investigating the profits generated by the wholesaler, who is believed to have been involved in the illicit activity since 2022.
During the early morning raid, two local men, in their early 30s, were arrested. They are suspected to be the owner and manager of the premises where the decanting process was taking place.
“The decanting process is typically conducted in the early morning, to take advantage of the cooler temperatures and the use of ice,” he explained.
In addition to the LPG cylinders, KPDN seized closed-circuit television (CCTV) cameras, mobile phones, and related documents. The case is being investigated under the Control of Supplies Act 1961, and the Anti-Money Laundering, Anti-Terrorist Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).
“KPDN is also in the process of suspending the wholesaler’s controlled goods licence, due to the serious nature of the offence,” he added.
