electricity tariffs INCREASE ?? does it make sense ?

          Minister of Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said that the electricity tariffs may increase in the next six months in the future.

    It is expected to occur if the price of crude oil such as natural gas and coal suddenly increased in the world market, he said in a written reply to Batu Gajah MP Fong Po Kuan.

        But, do you want to know that, the reported world oil prices suddenly dropped below the U.S. $ 108 (RM328.30) a barrel for the first time following the nuclear crisis in Japan. So, what the reason for the Malaysia  government to increase the electricity tariffs ? 

 you all can read the news about oil prices dropped here :

    Oil slides further on Japan nuclear concerns

March 15, 2011

LONDON, March 15 — Oil prices dropped sharply today with Brent crude falling below US$108 (RM328.30) a barrel for the first time in nearly three weeks as a deepening nuclear crisis in Japan heightened risk aversion across financial markets.

Japan’s nuclear crisis is equivalent to number six on the INES scale of nuclear accidents from one to seven, Kyodo news agency quoted the French Nuclear Agency as saying. The 1986 Chernobyl disaster was a seven and Three Mile Island a five.

There was panic buying in Tokyo shops after explosions at two nuclear reactors sent a low-level radioactive wind towards the capital, although officials said radiation levels at the stricken Fukushima Daiichi nuclear complex had fallen after an earlier spike.

April Brent fell US$4.29 to US$109.38 a barrel at 1212 GMT after earlier falling by more than US$5 to as low as US$107.88. US crude for April dropped US$3.35 to US$97.84 after slipping as much as US$4 earlier in the session.

“This is a massive risk off day today,” said Christin Tuxen, analyst at Danske Bank.

“The risk averse sentiment is coming through both in the equity market and euro/dollar. It’s weighing on oil even though fundamental drivers should suggest an upside.”

At one point, Japanese stocks plunged more than 14 per cent, heading for their biggest drop since 1987 as concerns grew over the economic impact of the unfolding disaster.

Oil demand from Japan, the world’s third-largest user, is likely to decline in the short term as manufacturing and transport stall but could then rise as the country seeks to replace nuclear with oil-fired power during reconstruction.

The International Energy Agency (IEA) said today global oil demand was likely to be lower than previously forecast in 2011 as a result of a price shock and trimmed its forecast by 10,000 barrels to 1.44 million barrels per day.

SAUDI TROOPS IN BAHRAIN

Oil markets were also keeping a close eye on developments in the Middle East where Bahrain declared martial law today, a day after Saudi forces arrived in the Sunni-ruled kingdom to help restore calm following weeks of protests by the island’s Shi’ite Muslim majority.

Opponents of Bahrain’s Sunni ruling family called the move a declaration of war, while Iran denounced it as unacceptable and the United States urged its nationals to leave the island, which is home to the US Navy’s Fifth Fleet.

“The oil market is eyeing both developments in the Middle East and in Japan,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas.

“While the tensions in the Middle East represent upside risk to oil prices, the disruption to activity in Japan, and regionally through its trading ties with China, is leading oil prices lower for now.”

In Libya, Muammar Gaddafi’s jets bombed rebels yesterday in a counter-offensive that has pushed them back 160km in a week, far outpacing diplomatic efforts to impose a no-fly zone to help the insurgents.

On the data front, markets were looking towards weekly US inventory numbers from industry group American Petroleum Institute. A Reuters poll indicated US crude oil stockpiles probably rose by 1.8 million barrels last week. — Reuters

    

         Actually, this news happens in the 2011. I want to publish it because the electricity tariff will be increase soon. But, I hope government of Malaysia will considered it again because of the flood happens in the Pahang, Terengganu, and Kelantan. If the electricity tariff increase, it will burden the citizen because they need to recover what they had lost in the flood. There a lot of goods that they are already loss and need to replace it with the new things.  

       

         Do not forget to pray for them who are been flood's victims !!!