Energy Crisis Lagging Effect Hits Natural Gas and Coal Prices
The global energy crisis is causing a lagging effect on natural gas and coal prices. According to Economy Minister Akmal Nasrullah Mohd Nasir, this impact was initially concentrated in the petrol market since last March but has now spread to other energy supplies.
The lagging effect typically takes three to four months before affecting current electricity tariffs, which means that today's discussion about July and August energy consumption is actually reflecting a retrospective impact on fuel costs.
Akmal noted that the current tariff-setting mechanism protects most small-scale domestic consumers from being directly affected by rising fuel prices. However, he stated that Prime Minister Datuk Seri Anwar Ibrahim will chair a special meeting to reassess the tariff situation and reduce people's burden.