Malaysian experts warn caution over limiting fuel purchases amid Mid-East war

An expert suggested that the government should explore various options to safeguard fuel supply. Read more at straitstimes.com.

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PETALING JAYA - Economists have urged caution over propo­sals to limit RON95 petrol purchases for Malaysians following the Iran-US conflict, warning that administrative controls could trigger unintended consequences such as panic buying and supply distortions.

Although global tensions and potential disruptions to key shipping routes such as the Strait of Hormuz could affect oil markets, they said Malaysia is unlikely to face an immediate physical shortage of petrol.

However, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the government should explore various options to safeguard fuel supply, given Malaysia’s reliance on imported refined petroleum products.

“For instance, import of refined petroleum from the Middle East accounted for about 13.5 per cent as of last year,” he said.

He said the bulk of it comes from Singapore, South Korea and China, where the share of total imports stood at 39.5 per cent, 11.5 per cent and 10.2 per cent respectively.