Impact of Energy Crisis Driving Up Power Bills and Fuel Costs

By the Editorial Team · Friday, September 18, 2026

Malaysia is experiencing higher electricity costs due to rising natural gas and coal prices linked to Middle East conflicts, with adjustments applying only to consumers using over 600 kWh per month under the Automated Fuel Adjustment mechanism. The Economy Ministry has also approved a proposal for a new RM80 million health clinic in Johor to support the state’s economic growth and expanding infrastructure needs.

JOHOR BARU — Rising global energy costs driven by ongoing Middle East conflicts are increasingly impacting electricity prices in Malaysia, with higher natural gas and coal prices contributing to increased generation expenses, Economy Minister Akmal Nasrullah Mohd Nasir said.

The minister explained that the current rise in natural gas and coal prices is a delayed consequence of earlier disruptions that initially caused petrol prices to climb in March. “Natural gas is one of the fuels used to generate electricity. Usually, when petrol prices increase, there is a lag of about three to four months before natural gas prices are affected,” Akmal Nasrullah told reporters during an event at Kampung Melayu Majidee on Thursday.

Despite these increases, the minister noted that most consumers using less than 600 kilowatt-hours (kWh) per month are shielded from these fluctuations under the existing tariff mechanism. “Costs remain unchanged for consumers who use below 600kWh a month. However, users consuming beyond that threshold experience price changes based on fuel costs through the Automated Fuel Adjustment (AFA) mechanism, which reflects global fuel price variations,” he said.

The minister also highlighted that recent adverse weather conditions, encouraging residents to stay indoors, may have contributed to higher electricity consumption. “Although the tariff for users below 600kWh remains steady, the total amount paid depends on consumption levels, which can increase during unfavorable weather as people spend more time at home,” he added.

In addition to addressing energy concerns, Akmal Nasrullah announced the Economy Ministry’s approval of a proposal for a new health clinic in Kampung Melayu Majidee, with an estimated cost of RM80 million. The site is on land owned by the Health Ministry, but actual funding will depend on the upcoming budget allocation.

He underscored the importance of infrastructure development to match Johor’s robust economic growth, noting that the state achieved an 8% growth rate in 2025, reaching a gross domestic product of RM17.09 billion. The planned clinic is part of efforts to expand public facilities in line with the region’s development.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.