Dr M: ‘Buy in Singapore’ if you want cheaper gas

Liquefied natural gas is transferred from an on-shore ISO tank onto a vessel in Singapore in this picture released May 22, 2017. — Reuters pic
Liquefied natural gas is transferred from an on-shore ISO tank onto a vessel in Singapore in this picture released May 22, 2017. — Reuters pic

PUTRAJAYA, April 2 — Malaysia will not follow Singapore in cutting liquefied natural gas (LNG) prices, Prime Minister Tun Dr Mahathir Mohamad said today.

When asked about the republic’s move to lower prices in line with the commodity’s global decline, Dr Mahathir said LNG price was already low in Malaysia due to price support from the government.

“Singapore has reduced its prices? Then please buy in Singapore.

“We are already selling it at a subsidised price and it is very low — lower (prices) than even in the big oil-producing countries — what more can you ask?” he said in jest.

Asian LNG price fell to a three-year low last week on the back of sluggish demand amid warmer global temperatures.

It dropped below that of European market benchmarks, hitting US$4.43 (RM18.09) per million British thermal units (MMBtu), the lowest since April 2016.

Singapore reportedly dropped LNG price in the republic to the lowest point in five years, with rates hovering around the US$4.30 per MMBtu mark.