Coal price surge jolts Malaysia’s power costs, economy minister warns of direct impact

Malaysia's Economy Minister Akmal Nasrullah Mohd Nasir warned on September 18, 2026 that a surge in coal prices will directly affect the cost of electricity generation. The minister reported that coal prices had jumped to US$148 per tonne on September 10, 2026, marking a more moderate increase from US$130.67 per tonne in August. This rise comes as peak daily electricity demand hit 21,949 megawatts on September 9, a 4.7% increase over the August average.

Nasir assured that the increase in coal prices is within the acceptable range that the current electricity supply system can handle. He emphasized during a press briefing on TV1 that the government remains committed to maintaining adequate generation capacity and a robust electricity supply system to support economic activities, meet public demands, and enhance the resilience of Malaysia's energy sector.

The minister highlighted that the prices of crude oil and liquefied natural gas also climbed, with Brent crude oil reaching an average of US$90.88 per barrel in August, an 8.9% increase from US$83.42 per barrel in July.