Gas price to go up for residential and all others next year

PETALING JAYA: Gas prices for all sectors including residential will see increases of between RM3.69/MMBtu and RM4.54/MMBtu for the period of January till June next year, due to an increase of liquefied natural gas (LNG) prices.
An increase in base tariff for the six month period and the application of a surcharge of RM1.62/MMBtu under the gas cost pass through (GCPT) mechanism. The surcharge represents the increase in LNG price against the reference price in the base tariff in this period.
For Category A (Residential), the effective tariff rate for Jan 1 till June 30 next year will be RM23.92/MMBtu. For the other categories, the effective tariff rate will range from RM30.40/MMBtu to RM33.12/MMBtu.
The average natural gas base tariff has been set at RM30.90/MMBtu. The current average base tariff is RM28.05/MMBtu. The hikes translate to an average effective tariff of RM32.52/MMBtu.
In a filing with Bursa Malaysia Gas Malaysia Bhd said the government, via a letter from the Energy Commission, approved the revision of natural gas tariff in Peninsular Malaysia effective Jan 1 till June 30 next year.
“The government has prescribed the Incentive Based Regulation (IBR) framework which sets the base tariff for a regulatory period of three years from January 2017 and allows changes in the gas costs to be passed through via the GCPT mechanism every six months,” it said.
While the tariff revision has no material impact on Gas Malaysia’s business operations, it is expected to contribute positively towards the financial position of the company for the financial year ending Dec 31, 2018.
Gas Malaysia's share price was trading one sen lower earlier at RM2.69 with some 186,300 shares changing hands.