Malaysia consumes 700,000 barrels of oil daily, double its own production, forcing reliance on imports through disrupted global routes.
KUALA LUMPUR: Malaysia’s domestic oil consumption far outstrips its own production, necessitating continued imports despite being a producer.
The Finance Ministry stated that national consumption is about 700,000 barrels per day, double the domestic production of 350,000 barrels.
This reliance on imports is being challenged by global supply chain disruptions stemming from the West Asia conflict.
The ministry explained the conflict has affected the major shipping route through the Strait of Hormuz, causing supply delays.
“Crude oil and fuel supplies are experiencing disruptions and delays,” the MoF said in a statement.
It noted that crude oil prices have risen by nearly 40%, alongside increases in logistics and insurance costs.
Nearly 40% of Malaysia’s crude oil imports pass through the currently affected Strait of Hormuz.
Overall, 38% of the nation’s crude oil supply is imported via this route.
Domestic production accounts for 48% of supply, with the remainder sourced from Southeast Asia, West Africa, and other regions.
The ministry stated that reliance on imports is necessary to meet domestic demand for petrol, diesel, LPG, and jet fuel.
Most crude oil used in local refineries must be imported due to insufficient domestic production.
Petronas refines 48% of Malaysia’s petroleum products, with other oil companies accounting for 52%.
In related news, Petronas confirmed the arrival of the vessel Ocean Thunder in Malaysia.
The ship carried one million barrels of crude oil from Basrah, Iraq, as part of supply stability efforts.
