Gas Malaysia Hikes Gas Price

Malaysian gas retailer Gas Malaysia June 13 announced an increase in the price of gas for the non-power sector. The new price regime will remain in place for six months starting July 1.

The revised natural gas tariff has been set at ringgit 32.69/mn Btu ($8.2/mn Btu) compared with ringgit 32.52/mn Btu during the period January 1 – June 30. The tariff revision was approved by the government June 12, the company 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 December 31, the company added.

Malaysia Gas Association (MGA) welcomed the hike in gas tariff and said the move will ensure the country's energy security. "The MGA applauds the government's market liberalisation efforts, including deregulation of the gas price to achieve a market-based pricing. As the lead advocate for the nation's natural gas industry, the MGA is committed to facilitating the growth of the industry and views this announcement as a progressive step by the government to further develop a vibrant gas market," Rosman Hamzah, MGA secretary general, was quoted by Bernama saying June 13.

Gas Malaysia supplies natural gas and LPG to homes, commercial businesses and industries in Malaysia. Apart from the general public, its shareholders include MMC Corporation, Tokyo Gas, and Petronas Gas.