Malaysia facing fuel shortages

Murray Hunter
Mar 22, 2026


Malaysia facing fuel shortages



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As Malaysians are travelling all over the Peninsula for the Hari Raya break in their cars, major changes to Malaysia’s fuel situation have just become apparent.

Prime Minister Anwar Ibrahaim said that disruptions in the Strait of Hormuz has tightened global supply and the country is feeling the impact of rising global prices triggered by the Gulf conflict. Malaysia is a net importer of crude oil and 80 percent of Malaysia’s imports goes through the Strait of Hormuz.

Petrol rationing along with price increases is already occurring in Vietnam, Laos, Thailand, Cambodia, and Australia. There is a flood of subsidized Malaysian RON95 coming across to Thailand which is now being sold between Baht 25-37 per litre as smugglers are making bumper profits.

International media reports claim that the Singapore Refining and Malaysia’s Pengerang Refining facilities are beginning to reduce output and shutting down units as the crude supplies from the Gulf are waning. Malaysia has promised to supply extra fuel to Cambodia as there are acute shortages in the country, and has other export commitments.

This means that Malaysian consumers may not be guaranteed a steady flow of fuel, particularly if the Strait of Hormuz remains blocked. There are rumors that Malaysian authorities are already talking to Iranian authorities for permission for vessels to pass through to Malaysia. This means Malaysia will not host any further US military ships to its ports.

What is sure is that the cost of crude will rise substantially and there will be pressure upon the government to pass on some of these increases to Malaysian consumers. The government is already subsidizing Malaysian motorists RM 3.2 billion per month at current prices.

It is estimated the Malaysian refinery may have around 30 day buffer inventories of crude. If Malaysia does not get an alternative source of crude or stop exports to overseas customers, then there will be fuel shortages in Malaysia.

Changing the source of supply is not as straightforward as it sounds, as the refinery will have to be recalibrated to suit the new specifications of incoming crude.

In Malaysia petrol rationing and rising prices at the pump might be inevitable.