Govt preparing for all possible outcomes of Middle East conflict, says DPM
PETALING JAYA: Halting general petroleum exports will be the last resort of the government if the ongoing Middle East conflict worsens, says Datuk Seri Fadillah Yusof.
The Deputy Prime Minister said this was because PETRONAS has existing commitments.
“Stopping exports will be the last resort because we are still bound by agreements,” said Fadillah when met by reporters during an event at Samariang in Kuching yesterday.
According to the Statistics Department, Malaysia exported RM174.6bil worth of oil and gas products last year, comprising RM103.55bil in refined products and RM71.05bil in crude and LNG.
Fadillah, who is also in charge of the Energy Transition and Water Transformation Ministry, said that the situation remains stable due to the nation’s strong economic and fiscal position.
“But at the same time, we must take preventative measures,” he added.
Fadillah also did not dismiss the possibility that the cost to perform the haj will increase due to the conflict.
He added that Tabung Haji had begun talks with local and international airlines and an announcement will be made by the Religious Affairs Minister soon.
On a related matter, Fadillah said Prime Minister Datuk Seri Anwar Ibrahim has been contacted by Gulf leaders to act as a mediator in the ongoing Middle East conflict.
“The Prime Minister was contacted by Gulf countries to be a mediator in negotiations.
“Let’s pray that the conflict in the Gulf can be resolved, or at least open the Strait of Hormuz so that transportation can continue,” said Fadillah.
As of yesterday, Brent crude oil increased to US$103 (around RM405).
On Monday, Brent crude oil price surged past US$110 (RM432.60) per barrel, the highest increase in decades.
The fluctuation in crude oil prices came following the closure of the Strait of Hormuz by Iran on Monday after the United States and Israel escalated attacks.
On Friday, Finance Minister II Datuk Seri Amir Hamzah Azizan said petrol subsidies alone are estimated to jump to about RM2bil while diesel has increased to about RM1.2bil.
This brings the total fuel subsidy for RON95 and diesel to RM3.2bil.
This is an overall increase of RM2.5bil compared to the RM700mil before the conflict.
Anwar has said that if the Middle East conflict persists until the end of the year, RON95 subsidies alone could add up to RM24bil by the year’s end.
