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Govt to continue LPG subsidy

22 Jul 2025, 10:00 AM
Govt to continue LPG subsidy

KUALA LUMPUR, July 22 — The government remains committed to continuing the liquefied petroleum gas (LPG) subsidy, including for domestic use as well as for micro and small businesses in the food and beverage (F&B) sector.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali dismissed claims that the government plans to abolish the subsidy, describing them as inaccurate and misleading.

“The mandate given to the Domestic Trade and Cost of Living Ministry is to address leakages in the form of misappropriation and smuggling, and not to withdraw, reduce or abolish the LPG subsidy,” he said during the question-and-answer session in the Dewan Rakyat today.

He was responding to a question from Young Syefura Othman (Harapan-Bentong), who asked whether the government would continue providing LPG subsidies amid claims that the subsidy would be discontinued.

Armizan said although the LPG subsidy is primarily intended for consumer use, the government also considers the needs of micro and small-scale F&B businesses that provide food services to the public.

“The government remains open to allowing these businesses to continue benefiting from the subsidy. However, if the aim is to offer affordable prices, then the food and beverages sold must also be reasonably priced and not at premium rates,” he said.

He said the government’s commitment will be demonstrated through the formal recognition of eligible micro and small business premises via amendments to the Control of Supplies Regulations 2021, which will provide greater legal clarity.

“As we introduce control mechanisms, we will also ensure the LPG cylinder subsidy continues to benefit not only households, but also micro and small traders,” Armizan said.

— Bernama

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