KUALA LUMPUR (March 11): Prime Minister Datuk Seri Anwar Ibrahim has assured that the country's petroleum product supplies are secured at least until May 2026.

“We will continue to closely monitor the petrol supply situation,” he said at a special press conference on Wednesday.

A panel led by Finance Minister II Datuk Seri Amir Hamzah Azizan will also be tasked with monitoring developments in the Middle East daily and reporting to the government.

Malaysia is a net crude oil importer for domestic fuel needs, importing about 41% of its crude oil for refining purposes.

Anwar said the government will also step up enforcement against diesel smuggling at the borders, with firm action against those attempting to exploit the situation.

Anwar announced immediate discretionary cost cuts as he pledged to keep the subsidised price of its most widely used petrol, RON95, at RM1.99 per litre despite a surge in Brent crude prices.

He said government agencies will not hold official Raya open houses while ministers and officials are to limit overseas travel unless it is pre-scheduled and necessary. 

Anwar also urged ministers, government agencies, and government-linked companies and investment companies (GLCs and GLICs) to practise prudent spending.

“This sends a message to practise more prudent and moderate spending. This is a sensible step — we should avoid getting into a worse situation. It is better to adopt a more moderate and responsible approach,” he said.

Anwar said a special Cabinet meeting will be held on Friday (March 13) to review the country’s fiscal position and determine the next course of action.

Brent crude prices surged after the US and Israel launched an attack on Iran on Feb 28, effectively halting shipments through the Strait of Hormuz, where a fifth of global oil and liquefied natural gas normally passes.

On Monday, oil prices briefly jumped to nearly US$120 (RM470.88) a barrel. Brent crude was around US$89 at the time of writing.