PUTRAJAYA: The country’s gas supply is currently stable and sufficient to support power plant operations, ensuring that the national electricity supply system remains secure.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the electricity generation system in Peninsular Malaysia uses about 40% to 45% natural gas as its main fuel.
He said a large portion of the gas supply is sourced domestically from Kerteh as well as from the Thailand-Malaysia Joint Development Area.
"The Energy Transition and Water Transformation Ministry is closely monitoring the latest developments in the geopolitical crisis in West Asia.
"This is particularly following the closure of the Strait of Hormuz by Iran on March 2 which has affected the global energy market.
"However, this development does not affect the current availability and security of the country’s electricity supply," he said in a statement on Sunday (March 15).
Fadillah, who is also Energy Transition and Water Transformation Minister, said the government remains committed to protecting consumer welfare from rising global fuel costs.
This is managed through the Incentive-Based Regulation framework under the Fourth Regulatory Period from 2025 to 2027.
He said any changes in fuel costs such as gas and coal would be adjusted through the automatic fuel adjustment mechanism monthly.
Domestic consumers with electricity usage not exceeding 600 kilowatt-hours per month are fully exempted from fuel cost adjustments.
"This means that about 85% of domestic consumers nationwide will not be affected by fluctuations in fuel prices in the international market," he said.
He said the automatic fuel adjustment rate is expected to remain as a rebate until April.
However, it may change if global fuel costs continue to rise due to prolonged tensions in West Asia.
Since July 2025, the government has channelled subsidy support amounting to RM2.50bil to consumers through electricity bill rebates.
Fadillah added that the government is studying additional mitigation measures should the conflict in West Asia continue to exert excessive pressure on fuel costs. - Bernama
