Government raises natural gas prices

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KUALA LUMPUR (Oct 29): Gas Malaysia Bhd announced it has raised the natural gas selling price for non-power sector in Peninsular Malaysia, which resulted from the tariff revision made by the government.

In a filing with Bursa Malaysia today, Gas Malaysia highlighted the purchase price of gas procured from Petroliam Nasional Bhd (Petronas) will be “accordingly adjusted upwards”.  

“The purchase price shall take into account the blended price of domestic natural gas, as well as the liquefied natural gas (LNG) price, basing on the volume to be purchased by Gas Malaysia.  

“Gas Malaysia wishes to emphasise that there will be no change to the selling prices for customers under category A. Category A customers represent the residential segment,” it said in a statement.

Gas Malaysia added the tariff increase does not apply to liquefied petroleum gas (LPG).

“The approval of the tariff increase by the government will be subject to a sixth-monthly adjustment of both the selling and purchase prices, in an effort to address subsidy rationalization,” the group said, adding the government will announce as and when these adjustments take effect.
 
Gas Malaysia has dropped 9.04% or 35 sen year-to-date. The stock has been trending downwards, from RM3.86 in early January this year. It closed two sen higher to RM3.52 today, giving it a market capitalization of RM4.52 billion.