Gov’t will ensure sufficient petroleum from Jul to Dec

The Malaysian economy ministry has said that the government will continue ensuring there are secure and sufficient levels of petroleum from July to December, Bernama reports.

It said that as of June, the nation’s oil and fuel supplies remained stable and sufficient for domestic demand, following the government’s proactive measures implemented in phases since disruptions began in the Strait of Hormuz on February 28.

“Brent crude oil prices, which peaked at US$144.50 (RM590) per barrel in early April, declined to US$99.29 (RM405) per barrel between June 1 and 5, reflecting increasingly positive market sentiment following progress in peace negotiations.

“The government is, however, not taking the situation lightly, as physical supply constraints and declining global inventories persist,” the ministry said in a written reply on the Dewan Rakyat website today.

“The government has implemented several measures to safeguard oil supply security, including diversifying petroleum supply sources, optimising domestic fuel supply through biodiesel, preventing leakages through enforcement, and carrying out data-driven monitoring,” it added.

From just RM700 million in January, Malaysian fuel subsidies ballooned to RM5 billion in March before peaking at RM7.5 billion the following month, due to the rise in global oil prices brought about by the ongoing West Asian conflict. The government is currently projected to spend RM2 billion and RM1.5 billion a month to subsidise RON 95 petrol and diesel respectively.

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