PDA licence requirement tightened

The Petroleum Development Act (PDA) 1974 licensing requirements have been tightened with the introduction of several improvements to curb abuse of subsidised petroleum supply.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Hasan Malek in a statement here said among the improvements were to shorten the validity period of the licence to one to two years from the current practice of one to five years.

He said individuals who were convicted under the PDA would be blacklisted from applying for a new licence, even under a new company.

Hasan said his ministry would cooperate with the Customs Department to prepare tighter standard operating procedures concerning bunkering activities to combat export of subsidised diesel and illegal sale to foreign vessels.

Besides, he said the ministry was also considering the possibility to reinstate the subsidised diesel marking programme which had been adopted only between June 2006 and March 2011.

Hasan said the Control of Supplies Act 1961 was also being amended to suit the current market situation, including to impose heavier penalties.

“Between last year and last week, the integrated operation carried out with the Attorney-General’s Chamber’s special team have recorded 39 cases with seizures of 2.29 million litres of diesel and cash of RM949,929.00, apart from freezing bank accounts of syndicate members worth RM51 million,” he said.

Prior to this, the ministry announced the frozen of new licencing applications and the opening of new petrol stations for all brands, starting June 10 to December.

The ministry had also announced that the bunkering licence, as well as petrol and diesel wholesale licence, at private jetties to be cancelled with immediate effect in order to curb and tackle leakage and smuggling of petroleum products at such facilities. - NST
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