Petronas has taken to Facebook to explain how Malaysia is affected by the ongoing conflict in West Asia despite being an oil producer.
According to the company, the conflict has disrupted the global oil supply chain, most notably involving the Strait of Hormuz that remains largely closed to shipping. As a key corridor for nearly one-fifth of global oil and liquefied natural gas (LNG) flows, this has resulted in the price of crude oil to go up by almost 40%, with the cost of shipping, insurance and logistics also affected – this has seen fuel prices go up.
In Malaysia, crude oil is used to make petrol, diesel, liquefied petroleum gas (LPG) and aviation fuel, with 48% of these fuels being supplied by Petronas while the remaining 52% is from other oil companies in the country. Although Malaysia is an oil producer itself, it is still affected by the conflict because more than half of the crude oil processed into these fuels by refineries here is imported.
This is because domestic crude oil production isn’t sufficient to meet domestic demand. Petronas’ infographic indicates 48% of the crude oil needed is produced in Malaysia, while 38% is brought in from countries through the Strait of Hormuz. The remaining 14% is also imported, split equally between Southeast Asia and West Asia as well as other sources.
Petronas says it expects supplies at its petrol stations to be enough until at least the end of May this year and it has taken proactive measures to secure the country’s fuel supply. It adds that the prices of fuels are under the purview of the government and that the subsidies for petrol and diesel remain active. Users will still have access to fuels for their daily use but are advised to be prudent with their usage.
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This is disingenuous. There is no mention of the light sweet crude we sell to others and profit from. Probably also why Malaysia is always lagging to meet Euro fuel standards. Profit off our top grade oil, run a subsidy system for crap fuel and pretend like gomen is doing us a favour. All those fuel price comparisons that list Malaysia as the cheapest fuel in the region never show the comparative grade of fuel eg Euro 4/4M/5/6. Cakap betul-betul la always sandiwara not tired ah these people
Hello Petronas..by hook or no crook,your number one function is to serve the rakyat.
Stop giving excuses..u got 2 months to get your act right.The mad dog has no intention of slowing the fighting,stirring up the hype that Iran has nukes.
In fact,he might end the war by exploding a tactical mini nuke on Teheran.
If only Malaysians have a chance to use affordable EVs instead of relying on oil that is imported all the Middle East. Too bad only helang can afford EVs. Pipit can only buy Bezza, Saga, Persona, Myvi which rely on oil.
In peninsular Malaysia, the electrical supply grid still relies mostly on coal & natural gas fueled power stations. If fossil fuel prices still continue to rise, higher electricity rates will also make it more expensive to recharge EVs.
I think this still didn’t explain the full picture, especially the contradictory info e.g. MY is net exporter of oil (our good quality oil is exported & sold at higher price and we buy lower quality & lower price oil to process locally), local refineries cant handle our own light sweet crude oil (plants designed to handle lower quality is obviously over-designed and hence should be able to handle better quality ones), etc..
Sounds fishy as usual where the actual truth is being obscured for whatever reason…
The current oil refinery infrastructure is from the time decades ago when the money made from selling the tapis blend crude oil to other countries which were willing to pay higher prices, could more than cover the cost of importing sour heavier crude oil from the Middle East. But now, with the increase of vehicles on local roads, the said infrastructure is unable to cope with the demand, and thus, refined petroleum fuels are also imported from the refineries in Singapore.
Well once it goes up don’t bring it down, this is your chance to end the subsidy drug addiction, do away with the subsidy. People need to curb their joyrides and needless wastage of fuel. Vehicles that are way old to be fit for the roads need to be totally written off, those are highest fuel consumers and there are a lot of those junk out on the roads. High fuel prices will force those low-lifes to finally get rid of those dastardly trash cans on wheels.
if the profit per liter exported is 100 sen for example , but the cost to subsidize each liter of budi95 is 200 sen, then obviously fuel subsidies will be a nett loss to malaysia
Fire PH and the oil supply will automatically resume.
Obviously you were too sick and too tired to be aware that, via diplomatic efforts, the Malaysian govt had received approval from the Iranian govt to allow Malaysian ships to pass through the Hormuz Straits and thus restoring oil shipments to Malaysia.