Straits of Hormuz still critical for Malaysian oil shipments, says Anwar


PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has dismissed claims that Malaysian oil shipments do not pass through the Strait of Hormuz, describing the assertions as politically driven and not based on facts.

Clarifying the issue, Anwar said it was "not true" that Malaysian oil avoided the key shipping route, stressing that Hormuz remains a critical passage for global energy trade, including Malaysia's.

"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 when met at the Natural Resources and Environmental Sustainability Ministry’s monthly assembly here on Monday (May 4).

Anwar said the situation in the region is increasingly complex, with the strategic waterway facing congestion and heightened security risks.

"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.

He said the developments also involved concerns over the safety of crew members and shipping companies, contributing to the surge in global oil prices.

On April 10, PAS central committee member Datuk Dr Azman Ibrahim defended party president Tan Sri Abdul Hadi Awang’s remarks that fuel price increases in Malaysia should not occur given the country's domestic oil production.

Azman, who is also Terengganu agriculture, agro-based industry, food security and commodities exco, reportedly said crude oil from offshore platforms in the state was channelled to the Petronas refinery in Kerteh via subsea pipelines or tankers.

"Why wait for tankers passing through the Strait of Hormuz before lowering fuel prices? I repeat, our oil does not pass through Hormuz," he said in a Facebook post.

Anwar also addressed criticism over fuel subsidy rates in East Malaysia, particularly Sabah, Sarawak and Labuan, where diesel prices remain lower.

"There are politicians in Peninsular Malaysia attacking us, asking why we are giving excessive subsidies to Sabah and Sarawak.

"They do not understand the demographics or the transportation challenges there," he said.

He said the government's approach takes into account regional disparities and cost structures, particularly for rural communities.

"Yes, there are leakages, there is smuggling. But the solution is not to raise prices, which would burden farmers, fishermen and small traders in Sabah and Sarawak," he said.

Instead, Anwar said the government is focusing on subsidy rationalisation measures to curb leakages without imposing additional financial strain on vulnerable groups.

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