Anwar to outline Malaysia oil supply continuity plan

[KUALA LUMPUR] Malaysian Prime Minister Anwar Ibrahim will unveil a plan soon to shore up the country’s oil supply as uncertainties stemming from the conflict in Iran continue, Bernama reported.  

The plan will focus on making sure there is enough domestic supply to support economic activity, the report said, citing Economy Minister Akmal Nasrullah Mohd Nasir. 

The war in Iran and the disruption it has caused to the Strait of Hormuz has sparked concerns over a global energy crisis. Malaysia’s government said it expected to spend about RM7 billion (S$2.26 billion) on fuel subsidies in April, roughly ten times more than what it was paying before the Iran conflict. The government has previously signalled its current reserves could last until June.

State-owned oil and gas company Petroliam Nasional is in the final stages of securing new suppliers, Akmal was quoted as saying in the report. At the Asean level, there are also discussions on regional reserves though work is still needed on the framework and mechanisms, he said.

The Malaysian government is optimistic that the use of B15 biodiesel can begin on June 1 to help extend the country’s diesel supply, the report said. BLOOMBERG