FMM: Natural gas tariff rebate may lead to gas price increase

KUALA LUMPUR: Natural gas tariff rebate of 40 sen per one million British Thermal Units (mmBtu) may lead to cumulative gas price increase of 22.6% by end-2019 amid the global economic uncertainty, says the Federation of Malaysian Manufacturers (FMM).
The Energy Commission, on Dec 28, announced the approved average base tariff at RM26.71 per MMBtu for the first half of 2017, followed by RM28.05 per MMBtu in the second half, and subsequently RM30.90 and RM31.92 per MMBtu for the first and second half of 2018, respectively.
In 2019, the approved average base tariff is at RM32.69 per MMBtu for the first six months and RM32.74 in the next six months.
In a statement today, the federation said it acknowledged that the Gas Cost Pass-Through (GCPT) mechanism was in place and that the average base tariff would be adjusted according to the GCPT announcement for the relevant period.
"FMM will continue to advocate for a fair pricing of natural gas, in particular for the locally-sourced piped gas, and seek further engagement with the government to obtain further clarity on the basis of the average base tariff determination for the next three years," it said. — Bernama