Coal price hike has direct impact on cost of generating electricity


Economy Minister Akmal Nasrullah Mohd Nasir.

KUALA LUMPUR: The increase in coal prices to US$148 per tonne on Sept 10, 2026 will directly impact the cost of electricity generation, said Economy Minister Akmal Nasrullah Mohd Nasir today.

He said coal prices showed a more moderate increase in August to US$130.67 per tonne from US$129.63 per tonne in July, while peak daily electricity demand reached 21,949 megawatts on Sept 9, which was 4.7 per cent higher than the August average.

Akmal Nasrullah added that the increase was still within the reserve margin range that the existing electricity supply system could accommodate.

"The government will continue to ensure that the generation capacity and electricity supply system are sufficient to support economic activities, meet the needs of the people and strengthen the resilience of the country's energy system,” he said during a briefing on the global energy crisis on TV1 today. 

Apart from coal, the price of crude oil and liquefied natural gas also experienced an increase with the average price of Brent crude oil in August increasing 8.9 per cent to US$90.88 per barrel compared to US$83.42 per barrel in July. - Bernama

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