Malaysia to Amend LPG Subsidy Rules, Launch OPS KESAN 4.0 on July 1, 2025

KOTA KINABALU, Malaysia. June 30, 2025 – The Ministry of Domestic Trade and Cost of Living (KPDN) announced amendments to the regulations governing subsidized LPG cylinders and the launch of OPS KESAN 4.0, both effective from July 1, 2025, to enhance compliance and curb profiteering amid changes to the Sales and Service Tax (SST).

Speaking at a stakeholder engagement session with Sabah’s food and beverage trade associations, Minister Datuk Armizan Mohd Ali outlined updates to the Supply Control Regulations (Amendment) 2021. Unlike the previous cap of 42 kilograms of subsidized LPG at a time, the revised rules will consider the needs of micro and small food and beverage traders. “Affordable food vendors need not worry—they will continue to benefit from LPG subsidies,” Armizan assured.

The amendments aim to prevent subsidy leakages, such as misuse and smuggling, by introducing stricter control mechanisms. KPDN welcomed feedback from trade associations to refine these measures, with engagement sessions planned nationwide until the conclusion of OPS GASAK.

OPS KESAN 4.0 to Tackle Unjust Price Hikes

Starting July 1, 2025, OPS KESAN 4.0 will enforce compliance under the Price Control and Anti-Profiteering Act 2011 (AKHAP) in response to SST rate revisions and expanded service tax scopes. The operation will monitor traders to prevent unreasonable price or service charge increases, covering both SST-affected goods and services and essential items exempt from the changes.

KPDN will adopt three strategies to ensure effectiveness:


1. Price Data Collection : Daily price monitoring by KPDN’s Price Monitoring Officers (PPH) will establish baseline comparisons before and after SST adjustments.

2. Collaboration and Public Participation : Partnerships with government agencies and the public will be strengthened through the KITA GEMPUR initiative to combat manipulation and subsidy leakages.

3. Standardized Complaint Handling : A robust system will address public complaints via multiple channels, including the Enforcement Command Centre (03-8882 6245/6088), WhatsApp (012-665 4292), the e-Aduan portal (http://eaduan.kpdn.gov.my), a toll-free line (1-800-8886-800), and the Ez ADU KPDN app.

Strict Penalties for Non-Compliance

KPDN vowed to take firm action against unjustified price hikes. Individuals found guilty of profiteering face fines up to RM100,000, three years in prison, or both. Companies could be fined up to RM500,000.

“These measures protect consumers and ensure fair trade practices,” Armizan said, urging traders to comply with AKHAP regulations.

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