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Fuel Subsidy by the Federal Government
What is fuel subsidy stated in consumer’s electricity bill?
- Fuel subsidy refers to the amount of fuel cost subsidised by the Government for a unit of electricity consumed
- The amount stated in electricity bill refers to the subsidy on piped gas price only
- It is calculated based on benchmark market gas price set in base electricity tariff compared to the actual piped gas price used in the current electricity tariff charged to consumers
- The fuel subsidy amount indicated in the electricity bill is strictly for indication/information purpose with NO monetary transaction
Why is the fuel subsidy calculated separately in the bill?
The fuel subsidy is calculated separately in the bill, to indicate the actual cost of electricity that consumers should pay for their respective electricity consumption in the absence of the fuel subsidy by Government.
How is the subsidy being calculated and based on what market price?
The subsidy is calculated based on the following formula:
- Gas cost per unit sales for every RM1/mmbtu x difference in benchmark market price of gas and the subsidised piped gas price used in current tariff x total electricity consumption for the month in kWh.
The benchmark market price of gas is determined by the Government.
How frequent will this subsidy calculation be revised?
The subsidy calculation will be revised based on the revision of the regulated price of piped gas every 6 months by the Government.
What is the current subsidy amount?
The current subsidy amount effective 1st January 2016 until 30th June 2016 is 7.98sen/kWh or RM0.0798/kWh