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Global fuel price surge pushes up electricity generation costs

KUALA LUMPUR: The surge in global fuel prices following geopolitical tensions in West Asia, particularly security disruptions in the Strait of Hormuz, has caused gas and coal costs in the second and third quarters of 2026 to rise well above baseline prices.

The Star MalaysiaThe Star查看原文 ↗
全球燃料价格飙升推高了发电成本。

Deputy Prime Minister Datuk Seri Fadillah Yusof.

KUALA LUMPUR: The surge in global fuel prices following geopolitical tensions in West Asia, particularly security disruptions in the Strait of Hormuz, has caused gas and coal costs in the second and third quarters of 2026 to rise well above baseline prices.

Deputy Prime Minister Datuk Seri Fadillah Yusof said fuel costs had far exceeded the baseline prices set under the Incentive-Based Regulation (IBR) framework for the fourth regulatory period (RP4), covering 2025 to 2027.

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