The newly minted Economic Minister together with the Council of Ministers have agreed (in average) to reduce the basic average tariff of facility usage gas that must be paid by gas users for the control period from 1 January 2023 to 31 December 2025. Setting the gas facility tarif set by government for each regulatory period is part of the framework to regulate the gas market in the country under the Incentive Based framework Regulation. Under the new tariff pricing, four gas facility which is the regasification terminal belonging to Regas Terminal (Sg. Shrimp) Sdn. Bhd. (RGTSU), a regasification terminal owned by Pengerang LNG (Two) Sdn. Bhd. (RGTP), a transmission pipeline owned by PETRONAS Gas Bhd. (PGB) and the distribution pipeline owned by Gas Malaysia Distribution Sdn. Bhd will be revising their charges which will eventually bring the price of gas consumed by industries and businesses to come down. Accordingly, the average basic tariff for RGTSU remains the same as the RP1 period on rate of RM3.455/gigajoule (GJ)/day. No income adjustment. For RGTP decreased by 9.2% at the rate RM3.165/GJ/day compared to RM3.485/GJ/day in the RP1 period. No income adjustment for the peiod. For PGB also decreased by 5.8% at the rate RM1.063/GJ/day compared to RM1.129/GJ/day for the RP1 period. The average tariff allowed for the period 1 January 2023 to 31 December 2023 is RM1.061/GJ/day after surplus adjustment income of RM0.002/GJ/day; and the average basic tariff for GMD remains as it was during the RP1 period rate of RM1.573/GJ/day. Average tariff allowed for period 1 January 2023 to December 31, 2023 is RM1.535/GJ/day after adjustment of excess income of RM0.038/GJ/day. The Economic Minister YB Rafizi Ramli in his live address on the price adjustment, said the decrease in the average tariff of gas facilities for the RP2 period is expected to be provide savings in terms of energy costs to the industry. Depends to the total volume of gas consumption, a decrease in the average utility tariff. This gas is projected to translate into savings between RM5.5 million to RM33.2 million per year and for user category either residential, commercial or industrial savings between RM4,000 to RM55.9 million per year 2023. Rafizi Ramli said he hoped that this reduction in gas facility tariffs will help the industry faced with a sudden increase in costs and subsequently translated as another effort to control the increase in the cost of living for benefits the people.
