Global Energy Crisis' Lagging Effect Hits Natural Gas and Coal Prices

Global energy supply disruptions are having a ripple effect on natural gas and coal prices. The Economy Minister, Akmal Nasrullah Mohd Nasir, said that the lagging effect of rising petrol prices has now spread to other energy sectors.

The impact is being felt in electricity generation costs for consumers who use more than 600 kilowatt-hours (kWh) per month. According to Akmal, natural gas prices typically take three to four months to reflect changes in fuel costs, which are used to set Automated Fuel Adjustment (AFA) tariffs.

The minister said that the current tariff-setting mechanism is able to protect most small-scale domestic consumers from being directly affected by the rising fuel costs. However, he acknowledged that the Prime Minister has announced a special meeting to reassess the tariff situation and reduce people's burden.