PUTRAJAYA, April 9 — Prime Minister Anwar Ibrahim said the recent rise in oil prices the West Asian conflict is not solely due to supply shortages, but also driven by escalating logistics costs and higher insurance premiums.
Speaking at the Transport Ministry’s monthly assembly today, Anwar explained that although key fuel supply routes remain open and shipments to Malaysia have not been disrupted, overall costs have increased significantly, reported Bernama.
“The oil that was procured before the conflict has been delayed in the Strait of Hormuz and is now being redirected to Pengerang, contributing to the higher costs,” he said.
He added that insurance premiums have surged by more than 100 per cent, while freight charges have also risen sharply, making previously secured supplies far more expensive than anticipated.
“This means that the oil that was initially expected to be processed at a lower cost in Pengerang is now significantly more expensive,” he said.
On the diplomatic front, Anwar emphasised that Malaysia’s strong international relationships remain a key asset in safeguarding national interests amid global tensions.
He cited Malaysia’s good ties with Iran as instrumental in ensuring safe passage for Malaysian merchant vessels, including those operated by Petronas, through the Strait of Hormuz.
“In my discussions with the President of Iran, Masoud Pezeshkian, he assured me that all necessary measures would be taken immediately to allow our ships to pass safely,” Anwar said.
The Foreign Ministry had earlier confirmed that one of seven Malaysian vessels previously stranded in the strait has resumed its journey, following high-level diplomatic engagement between Malaysia and Iran on March 26 that secured clearance for all affected ships.
The Strait of Hormuz, a critical global energy corridor handling around 20 per cent of the world’s oil and gas supply, has faced disruptions amid ongoing regional conflict.
Commenting on the broader situation, Anwar said the crisis has had ripple effects on the global economy, including Malaysia, despite the country not being directly involved.
He described the conflict as a major geopolitical shock that has destabilised Gulf nations and disrupted global markets, with long-term consequences expected, particularly in the energy sector.
Quoting the Emir of Qatar, Anwar said gas operations in the region may take at least three years to recover, with full normalisation projected within three to five years.
