Malaysia’s Oil Trade Still Relies On Hormuz, Says Prime Minister

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Prime Minister Datuk Seri Anwar Ibrahim has dismissed claims that Malaysian oil shipments do not pass through the Strait of Hormuz, saying the assertions are politically motivated and not supported by facts.

Anwar said it is incorrect to suggest that Petronas’ oil shipments bypass the strategic waterway, stressing that the Strait of Hormuz remains a vital global energy route, including for Malaysia’s trade.

“There are claims made at some state government meetings that Petronas does not go through Hormuz. This is sometimes the nature of politics in Malaysia — facts and truth are ignored,” he told reporters after attending the Natural Resources and Environmental Sustainability Ministry’s monthly assembly on Monday (May 4).

He added that the geopolitical situation in the region has become increasingly complex, with rising security risks and congestion affecting maritime movement through the strait.

“This is a route that must be used, but now there are disruptions. Prices have increased because freight costs and insurance premiums have risen,” he said.

Anwar also noted that concerns over crew safety and shipping risks have contributed to higher global oil prices.

The issue follows recent remarks by PAS central committee member Datuk Dr Azman Ibrahim, who had questioned the relevance of the Strait of Hormuz in determining fuel prices in Malaysia, claiming that domestic crude oil production does not depend on the route.

Azman had previously said crude oil from offshore platforms in Terengganu is transported directly to the Petronas refinery in Kerteh, suggesting that Malaysian fuel pricing should not be influenced by conditions in the Strait of Hormuz.

In response, Anwar also addressed criticism over fuel subsidies in Sabah, Sarawak and Labuan, where diesel prices remain lower than in Peninsular Malaysia.

He said some critics fail to understand regional economic differences and logistical challenges faced in East Malaysia.

“The government takes into account demographics and transportation costs, especially for rural communities,” he said.

Anwar added that while subsidy leakages and smuggling remain issues, the government’s approach is focused on rationalisation rather than price hikes that could burden farmers, fishermen and small traders.

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