SIBU: The issue of expensive LPG cylinders in Bario has been settled as the items are now being sent there, says state director of the Ministry of Domestic Trade and Consumer Affairs Datuk Stanley Tan.
He said the transporter could not make any delivery then as a stretch of timber road to Bario was cut off by the heavy rain.
He said the stretch had been repaired on Tuesday.
Tan said the issue on LPG cylinders priced at RM65 each stemmed from the Price Standardisation Programme, which was not implemented between December last year and March this year as the standard operating procedure (SOP) was still being strengthened, including using open tender for appointment of transporters unlike direct negotiation as was previously.
He said the programme covered Sarawak, Sabah and certain parts of Peninsular Malaysia.
Hence, the transportation cost then (to Bario) was not subsidised by the government, resulting in the LPG cylinders be sold at a higher price due to high transportation cost.
Tan said the programme had just resumed and that there were 79 transporters in the state who were appointed on April 1 this year.
“Now that the programme has resumed, the government is subsidising the transportation cost and hence, the price of LPG should be RM26.60 per cylinder at the point-of-sale. But if a customer asks for the item to be delivered from the grocery store or point-of-sale (POS) to their home, some charges will be imposed (by the POS).
He added that the parties involved could not raise the price if the transportation cost had already been subsidised.
Bario is one of 451 distribution areas in Sarawak.
“We hope that starting this week there will be no more issue of LPG being priced at RM65 per cylinder.”
Meanwhile, Mulu assemblyman Datuk Gerawat Gala confirmed that the price of LPG in Bario was RM65 per cylinder while the price of petrol and diesel was RM3.80 per litre.
He said since January this year the appointed contractor had not delivered any LPG or fuel to Bario and other remote locations in Baram, resulting in very high price for the essential items.
He was responding to Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen’s statement that he had instructed the ministry’s officers to conduct an immediate investigation into the delay of delivery by the appointed contractor.