HomeAsiaMalaysia tightens borders to fight fuel smuggling amid global energy crisis
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Malaysia tightens borders to fight fuel smuggling amid global energy crisis

PressNewsAgency
By PressNewsAgency

Malaysia will tighten border enforcement to curb fuel smuggling and keep subsidised petrol prices unchanged as the widening US-Israeli war with Iran disrupts energy flows through the Strait of Hormuz and rattles global oil markets.

The move comes amid concern that rising fuel prices abroad could make smuggling subsidised fuel out of Malaysia more profitable.

“The most worrying aspect is that this conflict has an impact on the global economy, Asia and Malaysia,” Prime Minister Anwar Ibrahim said at a special press conference on Wednesday. “The more serious problem is disruption to oil and gas supplies, which usually pass through the Strait of Hormuz.”

He said the government had decided to keep the pump price of subsidised RON95 at 1.99 ringgit (50 US cents) unchanged despite the global increase in crude oil costs, and ordered tighter monitoring of subsidised fuel movements to curb smuggling.

“This is a difficult decision, but it will be maintained at 1.99 ringgit a litre even though the market price is much higher,” he said, without elaborating on how much more the government would spend on subsidies.

Prime Minister Anwar Ibrahim says state-oil firm Petronas has assured the government that Malaysia’s petroleum product supply remains secure and sufficient until at least May. Photo: Pool via AP

A finance ministry statement later said unsubsidised RON95 would rise to 3.27 ringgit a litre for March 12 to 18, while targeted subsidised RON95 under the government’s Budi95 scheme would remain at 1.99 ringgit.

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