LPG permit, licencing exemption in Sarawak will reduce bureaucracy - Abang Johari 

KUCHING, Sept 9  -- The permit and licencing exemption given to liquefied petroleum gas (LPG) distributors in Sarawak will be able to reduce bureaucracy in gas distribution and regulation activities in the state, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

He said the exemption which came into effect on June 1, was also in recognition of the capabilities of Sarawak's corporate organisations in regulating the gas industry.

“This exemption is also in recognition of the corporate organisations’ more meaningful involvement which had enabled Sarawak to take a more active role in the country’s oil and gas industry as aspired by the state all this while," he said in his speech at the hand over of the LPG regulatory exemption letter here, today.

On May 31, the Federal government had agreed to grant exemption to LPG distributors in Sarawak from having to apply for permits and licenses for LPG distribution in the state starting June 1.

Through the exemption, LPG wholesalers and retailers in Sarawak only needed the Distribution of Gas Ordinance (DGO) licence from the Sarawak Utilities Ministry for the distribution of LPG and are no longer required permission under the Petroleum Development Act 1974 (PDA) and the Supply Control Act, 1961 (CSA) from the Domestic Trade and Consumer Affairs Ministry (KPDNHEP).

Meanwhile, KPDNHEP Minister Datuk Seri Alexander Nanta Linggi said the decision on the exemption was made on the understanding that Sarawak would carry out the regulatory activities on its own and be more involved in the governance of the oil and gas industry in the state.

"At the same time, we hope this decision will also improve ease of doing business, which will definitely have a positive economic impact in the form of local investments as well as bring growth to domestic trade activities," he said in his speech at the event.





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