THE Trinidad and Tobago Manufacturers’ Association (TTMA) has raised concerns with the National Gas Company of Trinidad and Tobago (NGC) over the proposed increase in natural gas prices for Light Industrial Consumers (LIC).

It warned members in a memo that it could weaken manufacturers’ competitiveness and trigger knock-on effects across the domestic economy.

In a meeting held on Thursday, TTMA president Dale Parson and the association’s team outlined what they said would be a two-fold impact: higher costs for manufacturers that use natural gas directly in production, and secondary pressure on small and medium-sized enterprises (SMEs) that purchase inputs from those manufacturers.

TTMA said the proposed adjustment could create a cascading inflationary effect and may lead to reduced output, constrained exports, and a decline in foreign exchange earning capacity.

The association recommended that NGC revisit its position or introduce the policy change in a more gradual and “palatable” manner for LIC users.

NGC, however, indicated the adjustment is consistent with the Government’s broader policy objective of ensuring state enterprises remain sustainable and viable. According to TTMA’s account of the discussions, NGC said it has been selling gas below cost to customers and that the proposed LIC price would remain competitive and subsidised compared with international benchmarks.

TTMA said NGC advised that the offered price—approximately US$5.30—was favourable relative to rates paid by other natural gas users locally, including industrial and energy-sector consumers, and that it was the most competitive rate achievable at this time given upstream acquisition costs and strong demand.

Based on that context, TTMA said it was informed there would be no changes to the proposal for the 2026 period. LIC companies were presented with two options: accept the offering for a minimum one-year period, or lock in the rate for three years, which NGC would honour regardless of shifts in local or global conditions.

TTMA told members that after the one-year period, and depending on developments in volatile global markets, there may be an opportunity to revisit and renegotiate terms for 2027.

The association said it will continue advocating for the most favourable gas pricing outcomes for LIC users and the non-energy manufacturing sector.