KUALA LUMPUR, April 28 — Malaysia’s electricity supply remains stable, but rising and volatile global fuel prices could push up generation costs and eventually affect tariffs if pressures persist, Economy Minister Akmal Nasrullah Mohd Nasir said today.

He said the main risk is not from power shortages, but the impact of fluctuating coal and gas prices on electricity production costs.

“When fuel costs such as coal and gas rise, the cost of generating electricity increases accordingly. Ultimately, this pressure may affect electricity tariffs for consumers if it is not managed carefully,” he said in an online briefing on the global supply crisis today. 

As of April 25, Akmal said Malaysia’s electricity generation mix remains heavily dependent on coal at 54 per cent and gas at 40 per cent, leaving the system significantly exposed to movements in global energy markets.

He added that coal imports in the first quarter of 2026 totalled 7.94 million metric tonnes, with full-year requirements projected at 35.99 million metric tonnes. 

“The Energy Commission is closely monitoring stock levels at power plants to ensure minimum supply requirements are consistently maintained,” he said.

For gas, Akmal said the average consumption for electricity generation in the first quarter stood at around 1,011 million standard cubic feet per day, largely supplied from domestic sources in Kerteh. 

However, he said the share of gas in the generation mix is expected to decline in July and August due to scheduled maintenance that will temporarily reduce supply to the power sector.

“In this context, the national electricity system must maintain flexibility to utilise alternative fuel sources to ensure continued stability of supply. At the same time, electricity demand is rising,” he said.

Between April 20 and 25, he said the average peak demand increased by 1.9 per cent to 20,640 megawatt (MW), compared with 20,257 MW the previous week. 

He said a new peak of 21,468 MW was also recorded on April 23, surpassing the previous high of 21,276 MW.

“This increase has been largely driven by hot weather, which has led to higher use of air conditioning in homes, businesses and workplaces. 

“As previously stated, there is a lagging effect in electricity supply, whereby the impact of rising fuel prices is only felt around two months after the initial shock,” he said. 

Akmal then went on to say that for May 2026, the cost of electricity generation is projected to rise, driven by coal prices increasing to RM21.28 per million British Thermal Unit (BTU), compared with the base price of RM19.14 per million BTU.

He then said that the government has given assurances that measures are in place to mitigate the impact on consumers, with around 7.5 million domestic users, or 85 per cent of households consuming below 600 kWh, continuing to be fully exempted from the Automatic Fuel Adjustment charge.

He urged consumers to adopt energy-saving practices, including moderating air-conditioning use, switching off unused appliances, and reducing consumption during peak hours to help ease demand and stabilise generation costs.