Lag Effect Hits Malaysia as Global Energy Crisis Spreads to Natural Gas and Coal

Malaysia's economy minister, Akmal Nasrullah Mohd Nasir, announced that the global energy crisis is beginning to impact natural gas and coal prices. This 'lagging effect' started with petrol in March and has now spread to other energy supplies, including natural gas, which typically takes three to four months to affect current electricity tariffs.

Natural gas is a fuel used for generating energy, and its price fluctuations are being observed on a global scale. The minister stated that when the price of petrol rises, there's a delay before natural gas is affected, known as the 'lag effect'. Today's discussion focuses on July and August energy consumption, where the cost of fuel burned to generate electricity has increased.

Akmal emphasized that the current tariff-setting mechanism protects most small-scale domestic consumers from being directly affected by rising fuel costs. However, he noted that some consumers who use more than 600 kWh per month may see fluctuations in their electricity bills due to the automated fuel adjustment.