Kuala lumpur: The country's gas supply is currently stable and sufficient to support power plant operations, ensuring that the national electricity supply system remains secure, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is Minister of Energy Transition and Water Transformation, highlighted that the electricity generation system in Peninsular Malaysia utilizes around 40 to 45 percent natural gas as its main fuel.
According to BERNAMA News Agency, a significant portion of the gas supply is sourced domestically from Kerteh and the Thailand-Malaysia Joint Development Area. The Ministry of Energy Transition and Water Transformation (PETRA) is actively monitoring developments in the geopolitical crisis in West Asia, particularly after Iran's closure of the Strait of Hormuz on March 2, 2026, which has impacted the global energy market. Despite these challenges, Fadillah assured that the current availability and security of the country's electricity supply remain unaffected.
The government is committed to protecting consumer welfare from the impact of rising global fuel costs through the Incentive-Based Regulation framework under the Fourth Regulatory Period from 2025 to 2027. Changes in fuel costs, such as gas and coal, will be adjusted through the Automatic Fuel Adjustment mechanism on a monthly basis, reflecting the actual movement of fuel costs in the market.
Domestic consumers with electricity usage not exceeding 600 kilowatt-hours per month are fully exempt from fuel cost adjustments. This exemption ensures that about 85 percent of domestic consumers nationwide will not be impacted by fluctuations in international fuel prices. Based on current developments, the Automatic Fuel Adjustment rate is expected to remain a rebate until April 2026, although this may change if global fuel costs continue to rise due to prolonged tensions in West Asia.
Since July 2025, the government has provided RM2.50 billion in subsidy support to consumers through electricity bill rebates as an energy efficiency incentive. Additionally, the government is evaluating further mitigation measures should the conflict in West Asia persist and continue to exert pressure on fuel costs.