Natural gas tariff up 0.57% for July-Dec period

PETALING JAYA: The effective average tariff for natural gas for the non-power sector in Peninsular Malaysia will rise 0.57% to RM26.46/MMBtu for July-December period, from RM26.31/MMBtu (million British thermal units) for January-June period, as prescribed under the Incentive-Based Regulation (IBR) framework.
Gas Malaysia Bhd said in a filing with the stock exchange that the government had approved the revision gas tariff.
The average gas base tariff will be adjusted to RM28.05/MMBtu from RM26.71/MMBtu.
However, under the Gas Cost Pass Through (GCPT) mechanism, a rebate of RM1.59/MMBtu will apply to all tariff categories for the period beginning July to December 2017, translating to an average effective tariff of RM26.46/MMBtu, up 0.57% from RM26.31/MMBtu in the first half of the year.
Under the government's IBR framework, a base tariff is set for a regulatory period of three years from January 2017. The framework allows for changes in GCPT mechanisms for every six months.
Gas Malaysia expects the tariff revision to contribute positively to its earnings for the financial year ending December 31, 2017.
Its shares was up 4 sen to close at RM2.99 on some 156,800 shares traded, giving it a market capitalisation of RM3.84 billion.