KUALA LUMPUR, March 31 (Xinhua) -- Malaysia's state-owned oil and gas firm Petroliam Nasional Berhad (Petronas) said it continues to closely monitor the nation's fuel supply to help safeguard stability nationwide amid the ongoing Middle East conflict.
The firm said in a statement on Monday that even though Malaysia is an oil-producing nation, it is not fully insulated from the impact of the crisis, as nearly 40 percent of the country's crude oil requirements transit through the Strait of Hormuz.
It is noted that since the onset of the crisis, crude oil prices have risen by almost 40 percent.
"Consequently, global shipping costs, insurance premiums and delivery-related logistics have also increased significantly. All these developments have impacted Malaysia's fuel supply security," said the firm.
On the product side, it noted that national demand continues to exceed domestic supply.
To address this shortfall, Petronas leverages its integrated value chain, working through its subsidiaries to secure sufficient petrol and diesel supply, to support its market share of nearly 50 percent, up to May 2026, it said, adding that the balance is being supplied by the other oil companies operating in Malaysia.
Meanwhile, Petronas said retail fuel prices in Malaysia are regulated by the government through the automatic pricing mechanism.
Despite global pressures, it highlighted that the government provides subsidies for RON95 and diesel to cushion the impact on Malaysians, making fuel prices in Malaysia currently among the lowest in the region.
It said the firm will continue to work closely with the government and relevant stakeholders to manage any potential disruptions and to prioritize the nation's energy security and well-being.
As the duration and full magnitude of the conflict in Iran remain uncertain, Petronas said it strongly advocates more efficient energy consumption by both industry and members of the public.
"The company would also advise members of the public to avoid panic buying and hoarding of fuels as this would worsen the impact of this crisis," it added. ■