Authorities Crack Down On LPG Subsidy Diversion Ring In Sungai Pelek Operation

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A major case of suspected LPG subsidy diversion has been uncovered in Sungai Pelek, Selangor, after enforcement officers seized around 190 gas cylinders worth an estimated RM56,000 during a coordinated operation under Op Tiris 4.0 Bersepadu.

The raid, carried out at about 2.10pm yesterday, involved officers from the Domestic Trade and Cost of Living Ministry (KPDN) Selangor together with the Royal Malaysia Police (PDRM), following a two-week surveillance period on the suspected premises. Authorities said the operation was part of ongoing efforts to curb illegal activities involving controlled subsidised goods.

According to KPDN Selangor director Muhamad Hanif Asa’ari, investigators discovered that the premises were allegedly involved in “decanting” activities, where subsidised 14kg LPG cylinders were transferred into larger 50kg commercial cylinders. Such practices are often linked to attempts to maximise profit by exploiting price differences between subsidised and commercial markets, a concern that has repeatedly been flagged by enforcement agencies.

Authorities believe the repackaged LPG was then channelled into commercial supply chains, with suspicions that the subsidised gas originated from licensed wholesalers in areas including Banting, Tanjung Sepat and Sungai Pelek. In many subsidy leak cases, enforcement officials highlight that such diversion can disrupt market fairness and increase risks to end users if safety standards are compromised.

During the operation, officers seized a total of 190 LPG cylinders of various sizes, along with a bonded lorry believed to have been used in the illegal distribution process. A local man was also detained on site to assist investigations, while additional equipment such as connecting hoses and ice-filled plastic bags used in the transfer process were also confiscated.

Investigators are now focusing on tracing the wider supply chain behind the operation to identify other individuals or companies involved. Authorities stressed that such syndicates often operate through layered distribution networks, making upstream tracking a key part of enforcement strategy.

The case is being investigated under Section 21 of the Control of Supplies Act 1961, which carries heavy penalties including fines of up to RM1 million for individuals and even higher penalties for repeat offences, as well as possible imprisonment.

KPDN has reiterated its commitment to intensifying Op Tiris 4.0 enforcement nationwide to curb the misuse of subsidised goods, while also urging members of the public to report suspicious activities involving controlled items through official hotlines and digital complaint channels.

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