Federal government transfers licenses to import, distribute and retail liquefied petroleum gas in Sarawak to state government


The import, distribution and retailing of liquefied petroleum gas in the state of Sarawak will be regulated by the government of the state of Sarawak from June 1, 2021.

Under the Sarawak Gas Distribution (Chapter 72) Ordinance 2016 (“Order‘), Which entered into service on July 1, 2018, various activities related to the importation, distribution and retailing of gas, including liquefied petroleum gas, in the state of Sarawak will require a license. issued by the director of gas distribution under the ordinance.

To this end, the Federal Government of Malaysia has issued the Exemption notification (amendment) 2021 (“Change notification“) and the Order on the control of supplies (exemption) 2021 (“Exemption order”), Both of which will enter service on June 1, 2021.

The Notice of Change exempts the business of marketing or distributing natural gas and liquefied petroleum gas in the State of Sarawak from licensing requirements under sections 6 (1) or 6 (3) of the 1974 Act. oil development.

The exemption order exempts any licensee for the distribution and importation or retail sale of liquefied petroleum gas under the order (“dismissed”) Conditions of license under Regulation 3 of the Supply Control Regulations, 1974 subject to the following conditions:

  1. the incumbent ensures that the supply of liquefied petroleum gas to Sarawak is sufficient at all times;
  2. the licensee shall ensure that the supply of liquefied petroleum gas which is distributed, imported or retailed by the licensee is only marketed in Sarawak, except with the prior written authorization of the Minister of Internal Trade and Consumption;
  3. the licensee ensures that the subsidized price of liquefied petroleum gas complies with the price determined by the controller under the Price Control and Anti-Profit Law of 2011;
  4. the licensee obtains the supply of subsidized liquefied petroleum gas from a supplier as determined by the Ministry of Finance; and
  5. any other condition imposed by the Minister of Internal Trade and Consumer Affairs by notice.

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