KUALA LUMPUR, April 11 — Gas Malaysia Bhd, the country’s sole supplier of natural gas to the non-power sector, said today it had obtained government approval to raise the natural gas tariff in peninsular Malaysia from May 1.

The tariff adjustment follows a 14.89 per cent 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 does not apply to liquefied petroleum gas or natural gas for vehicles. The tariff for residential consumers and those who use less than 600 million metric British thermal unit (mmBtu) a year remain unchanged, according to a Gas Malaysia filing to the stock exchange.

For other classes of users with an average annual gas consumption of 601 mmBtu and above, the price increase ranged from 18-26 per cent, 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 would be adjusted upwards accordingly, Gas Malaysia said. — Reuters