Petronas calls for efficient energy consumption, warns public against panic-buying and fuel hoarding

MALAYSIA: Petronas has called for more efficient energy consumption by both industry and the public, warning against panic buying and fuel hoarding amid oil supply disruptions due to the ongoing conflict in the Middle East.

In a statement on Monday (March 30), the oil company said, “Even though Malaysia is an oil-producing nation, it is not fully insulated from the impact of the crisis.”

Nearly 40% of Malaysia’s crude oil requirements transit through the Strait of Hormuz. Since the conflict started in late February, crude oil prices have risen almost 40%, along with global shipping costs, insurance premiums and delivery-related logistics, the company added. 

With demand in Malaysia continuing to exceed domestic supply, Petronas said it is working through its subsidiaries to secure sufficient petrol and diesel supply to support its nearly 50% market share, up to May 2026, while the rest is being supplied by other oil companies operating in Malaysia.

Malaysia’s retail fuel prices are regulated by the government, and with subsidies in place for RON95 and diesel, fuel prices remain among the lowest in the region.

Still, while fuel prices there are not rising as quickly as in neighbouring countries, inflation continues to affect locals, with higher food and transport costs and concerns over job security.

Meanwhile, fuel-import reliant Singapore is in a better position than the rest of Southeast Asia, acting transport minister Jeffrey Siow said last week, thanks to the little red dot’s strong currency, deep well reserves, and proximity to the Strait of Malacca.

Work-from-home arrangements, which became the new normal in the pandemic, may make a comeback in parts of Asia as countries consider measures to cope with the current oil supply disruption.

Analysts also warned the Middle East war could soon result in a food and social stability crisis in Southeast Asia, with import-reliant Singapore acutely at risk. /TISG

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