Middle East conflict now impacting natural gas, coal prices, says minister

JOHOR BARU: The Middle East conflict, which has affected global energy supplies since March, is now impacting other energy sectors in the country, including natural gas and coal.

Economy Minister Akmal Nasrullah Mohd Nasir said the development was a lagging effect from earlier disruptions that were previously more noticeable in the petrol market.

He said the situation was now affecting electricity consumers who use more than 600 kilowatt-hours (kWh) a month.

"For consumers using more than 600 kWh a month, we can now see the impact of this global energy supply disruption.

"In fact, the impact has spread to other energy sources, including the prices of natural gas, coal, and other commodities," he said at a press conference after handing over mock cheques totalling RM169,000 for upgrades to health clinics in the Johor Baru parliamentary constituency at Medan Niaga Kampung Melayu Majidee today.

Akmal Nasrullah said under the current tariff structure, the majority of consumers using less than 600 kWh a month remain unaffected by supply price shifts or fuel costs.

"Based on the current tariff mechanism, the majority of consumers using below 600 kWh do not face a direct impact in terms of pricing or the fuel costs we incur," he said.

He added that there is still room for the government to examine alternative mechanisms to address global energy supply costs.

He said Prime Minister Datuk Seri Anwar Ibrahim will hold a special meeting today to evaluate, consider, and review the issues faced by the public following these developments.

"The prime minister will assess the mechanism, and there may be other avenues we can explore," he said.

Meanwhile, he noted that the current hazy weather could lead to higher electricity consumption, as the public are advised to stay indoors or remain in safer areas.