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Electricity Tariffs To Go up In July, How Will EV Charging Rates Be Affected?

Will EV charging become far more expensive compared to refuelling petrol soon?

Prime Minister Dato’ Sri Anwar Ibrahim recently announced a 14.2 percent increase in electricity tariffs for Peninsular Malaysia, set to take effect in July 2025. The new rate will raise the base tariff to 45.62 sen per kilowatt-hour (kWh), up from the current 39.95 sen/kWh under Regulatory Period 3 (RP3). 

While the Prime Minister acknowledged that the increase may be burdensome, he justified the decision by citing rising fuel costs and the need for a stable energy supply. However, this move has sparked debate, particularly regarding how it will affect consumers and industries like electric vehicles (EVs).

Moreover, the electricity price hike raises concerns about its broader effects on the cost of living, with some questioning the government’s commitment to reducing living expenses. Critics point to Tenaga Nasional Berhad (TNB)’s significant profits and question whether this increase is truly necessary, especially when Malaysians are already grappling with high costs for essential goods.

For EV owners and potential buyers, this tariff adjustment could lead to higher EV charging costs. As more people transition to electric cars, these price increases could deter individuals from purchasing EVs, making the overall transition to greener, more sustainable transportation more costly. 

This could also slow the adoption of EVs, especially as the government pushes for a cleaner environment. Higher electricity prices would directly affect the cost of charging, which is a major concern for EV users. With more people relying on home charging stations, the financial burden of charging EVs will increase, leading to a potential crash in EV sales.

On top of that, the government maintains that this tariff increase is essential to ensure energy stability and manage rising operating costs, particularly those related to fuel. Furthermore, Prime Minister Anwar Ibrahim emphasized that this decision was made after careful consideration of all factors, with the government’s commitment to protecting the people’s interests. 

In parallel, the government is also addressing Malaysia’s fiscal deficit through reforms such as the overhaul of subsidies and the introduction of new taxes. These measures are part of the broader effort to reduce the deficit and stabilize the national economy.

Wuling Binguo

In light of the tariff increase, the government is expected to introduce initiatives to promote energy efficiency among Malaysians, helping to alleviate the financial burden. So are EV owners going to be in big financial trouble soon?

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