Malaysia is preparing a broad plan to safeguard its fuel supply as tensions linked to the Iran conflict continue to affect global energy markets. Prime Minister Anwar Ibrahim is expected to announce the strategy soon, with a focus on ensuring stable fuel availability and reducing exposure to international price swings.
According to reports, the government has stepped up efforts to maintain adequate energy reserves to support economic activity and domestic demand. Economy Minister Akmal Nasrullah Mohd Nasir said concerns over possible disruptions in the Strait of Hormuz have raised fears of a broader energy crisis, prompting stronger measures to secure supplies, EconoTimes reported.
The ongoing conflict has increased the country’s financial burden, particularly due to fuel subsidies. The government is expected to spend nearly 7 billion ringgit (about $1.8 billion) on subsidies for April alone, a sharp rise compared to earlier levels. Officials have also cautioned that national oil reserves could come under pressure by June if supply disruptions continue.
To reduce reliance on traditional supply routes, state energy company Petroliam Nasional Bhd. is finalising deals with alternative international suppliers. The move is aimed at diversifying crude oil and fuel sources while limiting risks linked to instability in the Middle East.
Malaysia is also in discussions with regional partners under the Association of Southeast Asian Nations to explore the creation of shared energy reserves for use during emergencies. However, officials said more coordination and policy work are needed before such a system can be put in place.
In the near term, the country plans to speed up the rollout of B15 biodiesel from June 1. Authorities believe that increasing the share of biodiesel in diesel will help stretch fuel supplies and lower dependence on imports.
The planned measures reflect Malaysia’s efforts to manage rising domestic energy demand while dealing with uncertainty in global oil markets.
