With global oil prices hitting US$80 (RM280) per barrel last week, Petronas is now pushing for an increase in gas charges. If the subsidies were not removed, the Malaysian economy would remain “distorted”. Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said in Gemas.If the Government gives Petronas the green light to raise rates, consumers would have to brace themselves for higher costs since gas is required for generating electricity, industrial, household use and for NGV-powered automobiles.
Datuk Seri Dr Lim Keng Yaik said, Petronas had provided gas subsidies close to RM50bil since 1997, and last year alone, it paid out RM14bil in subsidy.
He said, a Cabinet committee chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi will decide on Petronas’ proposal next Monday.
Lim, however, assured the people that despite the heavy reliance by Tenaga Nasional Bhd and Independent Power Producers (IPPs) on gas, there would be no increase in electricity tariffs.
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