Malaysia’s Gas Supply Remains Secure, Majority of Electricity Users Protected From Fuel Price Impact
PUTRAJAYA – Malaysia’s gas supply remains stable and sufficient to sustain electricity generation, ensuring that power supply across Peninsular Malaysia continues uninterrupted despite global energy uncertainties.
Deputy Prime Minister Fadillah Yusof said the country’s natural gas resources remain capable of supporting the operations of power plants that form the backbone of the national electricity system.
Fadillah, who also serves as Minister of Ministry of Energy Transition and Water Transformation, noted that natural gas accounts for roughly 40 to 45 per cent of electricity generation in Peninsular Malaysia.
A substantial portion of this supply is sourced domestically, including production facilities in Kerteh as well as the Malaysia–Thailand Joint Development Area.
He emphasised that these domestic resources help ensure that Malaysia’s electricity supply remains secure even amid volatility in global energy markets.
Monitoring West Asia Geopolitical Developments
Fadillah said the government is closely monitoring developments in West Asia, where escalating tensions have affected global energy markets.
The situation intensified after Iran closed the Strait of Hormuz on March 2, a vital shipping route for international oil and gas trade.
Such developments have triggered concerns in global markets due to the potential disruption of energy supply chains and rising transportation costs.
However, he stressed that Malaysia’s current electricity supply remains unaffected by these developments.
Majority of Consumers Shielded
The government has also taken steps to protect consumers from rising global fuel costs.
Under the Incentive-Based Regulation framework for the fourth regulatory period between 2025 and 2027, changes in fuel costs such as gas and coal are adjusted through the Automatic Fuel Adjustment mechanism on a monthly basis.
However, households with electricity consumption not exceeding 600 kilowatt-hours per month are exempt from these adjustments.
This exemption means that approximately 85 per cent of domestic electricity consumers across the country will remain unaffected by fluctuations in international fuel prices.
Electricity Rebates Continue
Based on current market conditions, Fadillah said the Automatic Fuel Adjustment rate is expected to remain in the form of rebates at least until April this year.
Nevertheless, the rate could change if geopolitical tensions continue to push global fuel costs higher.
Since July 2025, the government has channelled around RM2.5 billion in subsidies to consumers through electricity bill rebates as part of efforts to encourage energy efficiency.
He added that the government is also exploring additional mitigation measures should the conflict in West Asia continue to place pressure on global fuel prices.
-wilayah.com.my
