Diesel shipments to Australia not locally produced


PETALING JAYA: Diesel shipments reportedly bound for Australia and labelled as originating “from Malaysia” do not involve locally produced fuel, says the Prime Minister’s Office.

It said the shipments consist of stocks owned by international companies that were stored in the country.

The PMO said the situation mirrors a previous case involving the Philippines, where fuel was similarly described based on its point of shipment rather than its origin.

“The diesel is not Malaysian, but belongs to international companies that purchased crude diesel from other countries before storing it in Malaysia,” the statement said.

It explained that the fuel sold to Australia under commercial agreements between Viva Energy and BP Australia, as reported in international media.

“It is described as ‘from Malaysia’ because the vessel collected the fuel stored in Malaysia,” the statement added.

The PMO maintained that the diesel did not originate from Malaysia’s natural resources.

“The diesel is not from Malay­sia’s reserves. The Malaysian government and national oil company PETRONAS are not selling our oil or diesel, as previously stated by the Prime Minister,” it said.

Australian media reported that more than 200 million litres of diesel are being shipped to the country, with one cargo reportedly sourced from Malaysia alongside shipments from South Korea and Brunei.

Australian Prime Minister Ant­hony Albanese said the additional supplies were secured through the country’s export finance scheme, with deliveries expected by end May or early June.

Australia’s Energy Minister Chris Bowen said the cargoes, contracted through Viva Energy and BP Australia, would provide an “extra buffer” to ensure sufficient fuel supply across key locations including Brisbane, Geelong, Sydney and Kwinana in Perth.

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