Malaysia produces oil but can’t fuel itself? Debate erupts online

A comment on Facebook asking why Malaysia is facing an impending oil or fuel crisis has sparked a debate on the country’s oil-producing capacity and why it is now a net importer of the much-needed resource.

A user on Facebook said, “How does a country that produces oil run out of oil?

“A country that has enough oil to export suddenly becomes a net importer of oil. Baffling.”

Four days ago, Prime Minister Anwar Ibrahim stunned the nation with comments that Malaysia is no longer an exporter of fuel in the sense previously understood.

“Petronas is now a net importer; we need to buy oil. Supply for April and May is sufficient, but for June it is still uncertain,” he said.

Before Anwar’s revelations, Malaysians had the impression that the country could withstand an oil crisis, despite the US war against Iran.

Popular beliefs were that Malaysia is a major oil producer and that it should have oil for more than the 2 months mentioned by Anwar.

It appears that Malaysia’s oil situation is more complex. Malaysia produces a lighter, premium grade that is sold at a higher price on the global market.

However, the refineries in Malaysia are designed to process heavier, cheaper crude that is outsourced mainly from the Persian Gulf.

While the country benefits from exporting its high-value crude and importing Gulf crude to keep refineries, it turns Malaysia into a net importer of fuel that is consumed locally.

Reports also say that nearly 70% of Malaysia’s crude imports transit through the Strait of Hormuz. The Iran war and the closure of the Strait create uncertainties.

Despite all the explanations, users on Facebook are having a field day, criticising the government for its fuel policies.

Another was sceptical, saying, “An oil-producing country with refineries should be able to supply locals fully, so why import? No wonder they’re asking people to work from home despite claiming that their ships are allowed to sail through Hormuz.”

A third said the whole situation is similar to the water issue; although he did not mention Malaysia or Singapore, they used the sale of Malaysian water to the red dot as an example.

“Kinda like water for said country too. They have the raw water, but it is cheaper for them to export, get the raw water treated, and then import treated water than to treat it themselves. 

“Yet that one old-S politician keeps harping on the 3 cents per gallon of raw water, and conveniently omits the above…”

One citizen alluded to fallen former Prime Minister Najib Razak, asking who is pocketing the money now from the sale of quality oil since Bossku is in jail.

“Heard is because they sell the better quality oil for jet fuel purposes, then import lower quality oil for cars, machinery, etc. The question to ask is, who is pocketing the revenue from selling the good quality oil, since BossKu is in jail already? Hahahaha,” another commented.