KUALA LUMPUR, April 11 (Reuters) - Gas Malaysia Bhd , the country’s sole supplier of natural gas to the non-power sector, said on Friday it has obtained government approval to raise the natural gas tariff in peninsular Malaysia from May 1.
The tariff adjustment follows a 14.89 percent rise in electricity charges announced in December as part of the government’s aim to cut subsidies and reduce its budget deficit.
The gas price hike is not applicable to liquefied petroleum gas or natural gas for vehicles. The tariff for residential consumers and those who consume less than 600 million metric British thermal unit (mmBtu) a year remain unchanged, according to a stock filing from Gas Malaysia.
For other classes of consumers with an average annual gas consumption of 601 mmBtu and above, the price increase ranges between 18 and 26 percent, the company said.
“Gas Malaysia is confident that its long-term profitability will remain healthy, and is poised for better position on the back of pent-up demand, which will result in higher overall gas consumption,” it said.
The purchase price of gas that Gas Malaysia procures from Petroliam Nasional Bhd will be adjusted upwards accordingly, Gas Malaysia added.
Reporting by Yantoultra Ngui; editing by Jason Neely