Posted on 03 Jan 2017
Malaysian Iron and Steel Industry Federation (Misif) has voiced its strong objection to the planned increase in natural gas price by Gas Malaysia Bhd over the next three years.
It said the hike will adversely affect the industry players’ competitiveness in the international markets and severely jeopardise exports of steel products.
The federation said there would be an overall increase of about 23% over the next three years, despite a reduction in tariff rates for the January-June 2017 period.
“The tariff rebate of 40 sen per one million British thermal units (MMBtu) applicable for the January-June 2017 period translates to an average effective tariff of RM26.31/MMBtu. This is just a meagre reduction of 2.74% from the previous average tariff,” said Misif in a statement.
The Government has recently allowed revision in the base tariffs for natural gas for Peninsular Malaysia’s non-power sector from Jan 1, 2017 to Dec 31, 2019.
