Coal Price Hike to Hit Malaysia's Electricity Generation Costs

The Economy Minister, Datuk Seri Akmal Nasrullah Mohd Nasir, announced that the recent hike in coal prices to US$148 per tonne will directly impact electricity generation costs. This increase comes after a moderate rise in August to US$130.67 per tonne from US$129.63 per tonne in July.

Peak daily electricity demand reached 21,949 megawatts on September 9, which is 4.7% higher than the August average. The minister assured that the increase is still within the reserve margin range that the existing electricity supply system can accommodate.

Apart from coal, crude oil and liquefied natural gas prices have also increased, with Brent crude oil averaging US$90.88 per barrel in August, up 8.9% from July's US$83.42 per barrel.