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Malaysia's Fuel Stable Amidst US-Iran Tensions
13 Jul
Summary
- Malaysia's petroleum supply remains stable despite oil price hikes.
- Government assures petroleum supply security until December 2026.
- Three strategies ensure supply: diversification, optimization, and agreements.
Malaysia's petroleum supply remains stable despite recent global market volatility. The conflict between the United States and Iran has led to a 5.9% increase in Brent crude oil prices, rising from US$69.82 to US$73.94 per barrel between July 6 and July 10. This price surge was attributed to renewed attacks and concerns over maritime security in the Strait of Hormuz.
Economy Minister Akmal Nasrullah Mohd Nasir stated that the country's petroleum supply is sufficient for domestic requirements. The government is committed to ensuring supply security until December 2026 through a multi-pronged approach. This involves diversifying import sources, optimizing domestic fuel production, and reinforcing long-term supply agreements.
In addition to crude oil, the average price of liquefied natural gas (LNG) also increased by 7.9% during the same period. However, coal prices remained stable due to moderate demand from China and India. Peak electricity demand in Peninsular Malaysia saw a manageable increase of 2.5%, well within the country's supply reserve margin.
