Higher natural gas tariff by July 1


Syndicated News
Written by Syndicated News

KUALA LUMPUR, June 13 2018 : Gas Malaysia Bhd will revise upwards the natural gas tariff for the non-power sector in Peninsular Malaysia for the period from July 1, 2018 to Dec 31, 2018. 

The gas distributor said the government had approved the revision on June 12, 2018 via a letter from the Energy Commission.

Under the incentive-based regulation (IBR) framework, which sets the base tariffs for a three-year regulatory period beginning January 2017, changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism would be allowed every six months.

In a filing with Bursa Malaysia today, Gas Malaysia said the average natural gas Base Tariff would be set at RM31.92 per one million British thermal units (MMBtu) for the six-month period beginning July 1 to Dec 31, 2018, in line with its announcement on Dec 28, 2016.

“Under the GCPT mechanism, a surcharge of RM0.77 per MMBtu will apply to all tariff categories due to the higher actual gas costs against the reference gas costs in the Base Tariff in this period.

“This translates to an average effective tariff of RM32.69 per MMBtu,” it said.

Currently, the average base tariff is set at RM30.90 per MMBtu.

Gas Malaysia added that while the tariff revision has no material impact on its business operations, it is expected to contribute positively to its financial position for the financial year ending Dec 31, 2018.

Below are the revised effective tariffs after GCPT based on annual consumption:

- Residential consumers will pay RM23.80 per MMBtu.

- Non-residential customers who use up to 600 MMBtu annually will pay a tariff rate of RM30.50 per MMBtu.

- Consumption between 601-5,000 MMBtu: RM30.65 per MMBtu.

- Consumption between 5,001-50,000 MMBtu: RM30.96 per MMBtu.

- Consumption between 50,001-200,000 MMBtu: RM32.26 per MMBtu

- Consumption between 200,001-750,000 MMBtu: RM32.26 per MMBtu.

- Consumption above 750,000 MMBtu: RM33.32 per MMBtu.




About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.