‘We have our own oil so why are we still affected?’ – Petronas answers Malaysians’ popular question

As tensions in West Asia continue to impact global oil supply, many Malaysians have taken to social media to ask a common question “if Malaysia produces its own oil, why are we still affected?”.

Addressing this popular question frequently raised by people, Petronas shared on its official social media platforms to explained what exactly is happening.

According to Petronas, Malaysia still relies partly on imported crude oil and refined petroleum products to meet domestic demand.

The infographic showed that petrol, diesel, liquefied petroleum gas (LPG) and aviation fuel are among the fuel types vulnerable to supply disruptions, particularly when global shipping routes are affected.

Although Malaysia produces oil domestically, more than half of the crude oil processed in local refineries is imported, as domestic production alone is insufficient to meet the country’s total fuel requirements.

Nearly 40% of Malaysia’s imported crude oil passes through the Strait of Hormuz, one of the world’s most critical oil shipping routes, which is currently facing disruptions due to geopolitical tensions.

The infographic also indicated that 48% of Malaysia’s refined petroleum supply comes from PETRONAS, while the remaining 52% is contributed by other oil companies operating in Malaysia, highlighting the country’s interconnected energy supply system.

Meanwhile, Malaysia’s crude oil sources are diversified, with 48% coming from domestic production, 38% passing through the Strait of Hormuz, and the remaining portion sourced from other regions including West Asia, Southeast Asia and Africa.

Petronas noted that disruptions to global supply chains would inevitably impact Malaysia, as the country still depends on imports to balance domestic fuel demand.

The explanation comes amid growing public concern over potential fuel supply disruptions and rising global oil prices triggered by the escalating conflict in West Asia.

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