Kuala lumpur: Malaysians are advised to prepare for a prolonged period of pressure in the oil market even if the conflict in West Asia eases in the near term. Universiti Teknologi Petronas adjunct lecturer Samirul Ariff Othman said Malaysia's real challenge extends beyond the conflict period and continues throughout the recovery phase of the global energy system.
According to BERNAMA News Agency, Samirul highlighted the oil market's reliance on an interconnected network of systems, including tanker availability, maritime insurance, port access, refining configurations, and supply contracts. Disruptions to critical routes like the Strait of Hormuz affect these systems simultaneously, causing immediate price spikes while the recovery of physical supply takes much longer.
Although oil flows may continue, costs could rise sharply due to risks to tankers, higher war risk insurance premiums, alternative routes, and increased freight charges. Samirul noted that this situation is expected to directly impact fuel prices, increase the government's subsidy burden under the Budi Madani RON95 (BUDI95) programme, and drive up electricity, transport, logistics, and food costs.
Early signs of strain in the Asia-Pacific region include jet fuel shortages, petrol station closures, and flight disruptions in the Philippines, fuel shortages in parts of Australia, and the cancellation of about 1,100 Air New Zealand flights. Meanwhile, Samirul lauded Putrajaya's early intervention measures to strengthen the country's economic resilience.
At a special meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim, the National Economic Action Council (MTEN) agreed to diversify energy sources, explore alternative shipping routes, and strengthen supply resilience. Samirul described the measures proposed by MTEN as directionally sound but noted that they are more medium-term solutions.
He emphasized the need for public participation measures, such as fuel conservation, to extend the existing supply during periods of system stress. 'Energy security is no longer just about reserves or production, but the resilience of the entire supply chain, and that takes time to rebuild,' said Samirul.