Coal Price Hike Has Direct Impact On Cost Of Generating Electricity - Akmal Nasrullah

KUALA LUMPUR, Sept 18 (Bernama) -- 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.

Akmal Nasrullah said the daily price of Brent also soared above US$120 per barrel this week compared to a lower average in August.

In addition, the average price of liquefied natural gas rose 13.2 per cent from US$19.32 per million British thermal units (MMBtu) in July to US$21.87 in August and as of mid-September, LNG prices were approaching US$30 per MMBtu.

Akmal Nasrullah said geopolitical and supply route disruptions could still trigger price spikes in the short term even as the global market adjusts.

"In this situation, the government will continue to ensure fuel supply security until December 2026 through three approaches, namely diversifying import sources, optimising domestic fuel production and strengthening long-term supply agreements," he added.

According to him, the strategy of diversifying supply sources continues to be strengthened by sourcing crude oil and petroleum products from various regions, including the Americas, as well as exploring alternative sources from the African continent.

Akmal Nasrullah said this move is aimed at reducing dependence on any one country or supply route, especially as energy trade flows from West Asia continue to face uncertainty.

Malaysia and Thailand also strengthened energy cooperation through the signing of a production sharing contract and gas sales agreement for Block A-18-01 in the Malaysia-Thailand Joint Development Area to open up space for investment, maintain production and ensure long-term value for both countries.

He added that international markets have been adjusting since March 2026 through inventory adjustments, optimising supply sources and redirecting trade routes to reduce the impact of disruptions to raw materials and production inputs.

"The government's priority is to ensure that the domestic supply chain continues to function, the supply of basic necessities must be sufficient and global cost pressures do not excessively affect the well-being of the people and the continuity of economic activities," he added.

Meanwhile, Akmal Nasrullah said job losses increased to 68,177 workers for the period from January to Sept 16, an increase of 15,196 workers compared to the same period in 2025 involving the manufacturing and wholesale and retail trade sectors.

He added that Socso has implemented job relocation for 143,653 workers for the period from January to Sept 11 through the Employment Insurance System and the MYFutureJobs portal.

-- BERNAMA