Fuel Cost Hike Fuels Higher Electricity Bills for Some Consumers

The global energy supply disruption is causing ripple effects on fuel costs, extending beyond petrol prices to natural gas and coal. According to Economy Minister Akmal Nasrullah Mohd Nasir, the impact of this disruption is being felt in electricity generation costs, particularly for consumers using more than 600 kilowatt-hours (kWh) a month.

Akmal said that the Automatic Fuel Cost Adjustment (AFA) mechanism influences electricity rates for higher-consumption users based on fluctuations in global fuel costs. However, changes in natural gas prices typically take three to four months to filter through to electricity tariffs.

The minister stated that despite rising fuel costs, the existing tariff structure continues to shield most smaller domestic consumers from direct increases. Prime Minister Datuk Seri Anwar Ibrahim has called a special meeting to review the tariff situation and consider measures to ease the burden on the public.