KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) says it is closely monitoring Malaysia’s fuel stability as the Middle East conflict threatens to disrupt national energy security.

Despite Malaysia’s status as an oil producer, the nation remains vulnerable as nearly 40 per cent of its crude requirements transit through the volatile Strait of Hormuz.

Petronas said since the conflict began, crude prices had surged by almost 40 per cent, triggering a domino effect of soaring shipping costs, insurance premiums and logistical hurdles.

The national utility warned that “national demand continues to exceed domestic supply.”

To bridge this gap, Petronas is leveraging its integrated value chain to secure petrol and diesel supplies, defending its near-50 per cent market share through May this year.

While the government’s Automatic Pricing Mechanism and heavy subsidies keep RON95 petrol and diesel prices among the lowest in the region, the pressure is mounting, it said.

“Petronas will continue to work closely with the government and relevant stakeholders to

manage any potential disruptions and to prioritise the nation’s energy security and well-being.

“As the duration and full magnitude of the war in Iran remains uncertain, Petronas strongly advocates more efficient energy consumption by both industry and members of the public.”

The company also adviced members of the public to avoid panic buying and hoarding of fuels as this would worsen the impact of the crisis.