June 4, 2008

Daily Commentaries 5th June 2008

The steep hike in petrol prices and unexpected hike in gas prices and flows though effect on electricity tariff and consequently inflationary pressures is likely to have an immediate knee jerk effect on the KLCI performance today. Key highlight of new fuel subsidy structure includes: Pump price has increased by 78sen, RM625 rebate for private vehicle registration up to 2,000cc and 2,500cc for pick up tucks, price of gas for the electricity sector will be increased to RM14.31mmBTu from RM6.40, allowing TNB to pass on the higher cost through tariff revision and IPPs and palm oil producers will be levied a 30% and 15% windfall tax respectively on profits above certain threshold indicators.


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