Petros Niaga’s appointment as sole LPG distributor in Sarawak will not affect existing jobs, says state minister

KUCHING: The appointment of Petros Niaga Sdn Bhd as the sole distributor of liquefied petroleum gas (LPG) in Sarawak starting Dec 1 will not affect the jobs of existing suppliers, says state Utility and Telecommunication Minister Datuk Seri Julaihi Narawi.

He said 16 dealers currently under MyGaz Sdn Bhd could switch to Petros Niaga at any time to supply subsidised LPG.

"As such, the issue of the loss of jobs as alleged by related parties does not arise, similar to when MyGaz took over operations from Shell in 2013," he told the Sarawak Legislative Assembly in his winding-up speech on Monday (Nov 27).

Last Wednesday (Nov 22), MyGaz East Malaysia general manager Pakamard Boonsawat @ Becky said its Sarawak contractors, suppliers, transporters and dealers may lose their jobs due to the non-renewal of the company's distribution licence.

On Saturday (Nov 25), Sarawak DAP chairman Chong Chieng Jen urged the state government not to terminate MyGaz's licence as this would bring an abrupt end to the business of all its retailers and distributors in the state.

Julaihi said MyGaz currently had a 32% share of the subsidised LPG market in Sarawak while Petros Niaga controlled 68%.

He said his ministry decided not to renew MyGaz's distribution licence, which expires on Nov 30, following careful consideration.

"This means MyGaz will no longer be allowed to operate the subsidised LPG business starting Dec 1.

"However, MyGaz's licence for non-subsidised LPG is still valid until June 29, 2024, so MyGaz is still operating its non-subsidised LPG business in Sarawak," he said.

Julaihi also said Petros Niaga, with 65 dealers and 280 sub-dealers, would be able to provide ample job opportunities to Sarawakians.

"We are confident in Petros Niaga's ability to ensure a sufficient supply of subsidised LPG and to maintain a high standard of service for Sarawak's economic well-being," he added.