Gas Malaysia Distribution Reduces Average Base Tariff for 2024

Gas Malaysia Bhd's subsidiary, Gas Malaysia Distribution Sdn Bhd (GMD), has announced it will reduce its average base tariff by RM0.045 per gigajoules (GJ) per day through a rebate for the period of January 1 to December 31, 2024. This means GMD's allowed average tariff under the incentive-based regulation (IBR) for all types of utilisations will be RM1.528/GJ per day during this period.

The tariff adjustment is not applicable to the sales of liquefied petroleum gas supplied in gas cylinders or bulk supply. Gas Malaysia Bhd, a company that operates natural gas pipelines and sells liquefied petroleum gas, has reduced the daily base average tariff by 4.5 sen per gigajoule until December 31, 2024.

Why this matters: The tariff reduction will provide some relief to natural gas consumers in Malaysia and help keep energy costs more affordable in 2024. The lower tariff is also expected to contribute positively to Gas Malaysia Bhd's regulated business segment returns this year.

The distribution tariff reduction will continue to contribute positive returns from the regulated segment of Gas Malaysia Bhd for the financial year ending December 31, 2024. "The tariff adjustment is not applicable to the sales of liquefied petroleum gas supplied in gas cylinders or bulk supply," the company stated.

Key Takeaways

• Gas Malaysia Distribution to reduce average base tariff by RM0.045/GJ until Dec 2024.
• New allowed average tariff under IBR will be RM1.528/GJ per day during this period.
• Tariff reduction applies to natural gas consumers, not liquefied petroleum gas.
• Tariff reduction expected to provide relief and keep energy costs affordable in 2024.
• Tariff adjustment to contribute positively to Gas Malaysia Bhd's regulated business segment.