Deputy Prime Minister Fadillah Yusof assures that Malaysia’s domestic gas supply is stable and sufficient to support power plant operations, with consumer protections in place against global price volatility.
PUTRAJAYA: The country’s gas supply is currently stable and sufficient to support power plant operations, ensuring the national electricity supply system remains secure, according to Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Minister of Energy Transition and Water Transformation, stated that the electricity generation system in Peninsular Malaysia uses around 40 to 45% natural gas as its main fuel.
He explained that a large portion of the gas supply is sourced domestically from Kerteh as well as from the Thailand–Malaysia Joint Development Area.
The Ministry of Energy Transition and Water Transformation is closely monitoring developments in the geopolitical crisis in West Asia, particularly following the closure of the Strait of Hormuz by Iran on March 2, 2026, which has affected the global energy market.
Fadillah emphasised that this development does not affect the current availability and security of the country’s electricity supply.
He added that the government remains 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.
Any changes in fuel costs such as gas and coal are adjusted through the Automatic Fuel Adjustment mechanism on a monthly basis based on the actual movement of fuel costs in the market.
Domestic consumers with electricity usage not exceeding 600 kilowatt-hours per month are fully exempted from these fuel cost adjustments.
This means about 85% of domestic consumers nationwide will not be affected by fluctuations in fuel prices in the international market, according to Fadillah.
He said based on current developments, the Automatic Fuel Adjustment rate is expected to remain in the form of a rebate until April 2026.
He noted the rate 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 RM2.50 billion to consumers through electricity bill rebates as an energy efficiency incentive.
The government is also studying additional mitigation measures should the conflict in West Asia continue and exert excessive pressure on fuel costs.
