PUCHONG: A syndicate involved in the misappropriation of subsidised liquefied petroleum gas (LPG) was found using a new tactic—transferring subsidised 14kg LPG into non-subsidised 50kg barrels using bonded trucks as covert transfer points before selling them at lower prices to the industrial sector.
This operation was uncovered during a raid by the Selangor enforcement division of the Domestic Trade and Cost of Living Ministry, in collaboration with the police, at a premises in Taman Meranti Permai, Puchong, at 11pm on Thursday (Feb 20).
Selangor Domestic Trade director Mohd Zuhairi Mat Radey said the raid followed a month-long intelligence operation that revealed the premises were a licensed LPG wholesaler that had been operating for one to two years as a supplier and distributor.
During the raid, enforcement officers discovered various equipment, including hoses and barrels filled with ice, believed to be used in the illegal LPG transfer process.
"Based on the equipment found, we suspect that the premises were selling 50kg LPG barrels containing subsidised LPG to industrial buyers at a lower price—approximately RM190 compared to the actual market price of RM220.
"More than 4,000 LPG barrels of various brands, with capacities of 14kg and 50kg, were seized, along with 17 lorries, decanting equipment, and business documents for further investigation. The total value of the seized items amounted to RM1.6mil," he told reporters at the scene on Thursday (Feb 20).
According to Mohd Zuhairi, the syndicate’s modus operandi involved transferring gas from three subsidised 14kg LPG barrels into a single non-subsidised 50kg LPG barrel. It is estimated that between 100 to 300 units of 50kg LPG barrels could be produced daily.
"Each 14kg LPG barrel takes at least 15 minutes to transfer, meaning a total of 45 minutes is needed to fill one 50kg barrel.
"This tactic is designed to evade detection by authorities, as the transfer process takes place inside a bonded lorry. The syndicate also uses a conventional method involving ice to further compress the gas," he added.
A total of 21 men were detained during the raid. Four, including the premises owner, were released on police bail, while the others, all foreigners, remain in custody to assist in the investigation. - Bernama
