No oil supply crisis on the horizon, says Anwar

Prime minister says supply remains relatively secure although Malaysians may see price disruptions in the coming months.

Anwar, who is also finance minister, said this was partly thanks to Petronas’s strong track record as an oil importer and its good relations with oil-producing countries.

“We are also a net oil importing nation because our (petroleum) products are premium, which cost slightly higher, but we still import (crude oil).

“We are not facing a crisis in terms of supply. There may be some disruptions in fuel prices, but supply is guaranteed for the coming months,” he said during a question-and-answer session at the Kuala Lumpur-Ankara Dialogue here.

The Iran war sent crude oil prices surging due to the closure of the Strait of Hormuz.

Last month, Anwar said Malaysia had enough RON95 petrol to maintain the subsidised price of RM1.99 per litre, at least until May.

Putrajaya however raised the price of diesel in West Malaysia, RON97 and non-subsidised RON95 significantly in the weeks since the conflict broke out.

Anwar said the estimated fuel subsidy bill as of late March stood at RM4 billion a month following the crude oil price surge.

The government subsequently introduced several energy-saving measures, including ordering certain segments of civil servants to work from home and encouraging the private sector to follow suit.

Putrajaya also slashed the monthly BUDI95 quota from 300 litres to 200 and plans to introduce targeted diesel subsidies in Sabah, Sarawak, and Labuan.

On broader global pressures, the prime minister said Malaysia remained exposed to international trade and geopolitical developments although it was in a stronger position than some.

“We trade, of course, extensively with the US… very strong with China and Europe and the Middle East.

“We are fortunate in the sense that we are more insulated compared with the Europeans. But what is affecting the Europeans is affecting us, too,” he said.