KUALA LUMPUR: Malaysia still needs to import crude oil despite having its own oil production because domestic consumption is much higher, at about 700,000 barrels per day, compared to the 350,000 barrels produced per day, according to the Finance Ministry (MoF).
The ministry explained that the conflict in West Asia has disrupted the global oil supply chain, including transportation and delivery, and affected the major shipping route through the Strait of Hormuz.
“Crude oil and fuel supplies are experiencing disruptions and delays. Crude oil prices have risen by nearly 40 per cent, along with increases in logistics and insurance costs,” the MoF said in a statement, Saturday.
According to the ministry, 48 per cent of Malaysia’s petroleum product supply is refined by Petroliam Nasional Bhd (Petronas) while 52 per cent is by other oil companies in the country.
It noted that 48 per cent of Malaysia’s crude oil is produced domestically and 38 per cent is imported through the Strait of Hormuz. Seven per cent is sourced from the Southeast Asian region, West Africa, and others, while another seven per cent came from West Asia and elsewhere.
The ministry explained that most of the crude oil used in refineries still has to be imported because domestic production is insufficient to meet national demand.
“Nearly 40 per cent of the imports pass through the Strait of Hormuz, a major route that is currently affected,” it said, adding that reliance on imports is necessary to meet domestic demand for petrol, diesel, liquefied petroleum gas (LPG), and jet fuel.
Meanwhile, Petronas today confirmed that the vessel Ocean Thunder has arrived in Malaysia carrying one million barrels of crude oil from Basrah, Iraq, as part of the company’s ongoing efforts to maintain the stability of the nation’s fuel supply.
