Malaysia clarifies diesel sold to the Philippines was from Singapore company, not Petronas

KUALA NERUS: After rumours spread on social media that Malaysia had sold diesel to the Philippines, the government clarified the matter on Monday (April 13).

The war in the Middle East, which began on February 28 when the United States and Israel started bombing Iran, has resulted in the effective closure of the Strait of Hormuz, where a fifth of the world’s fuel supply transits, much of which is headed toward Asia. This has caused a fuel crisis, and countries in the region have been scrambling to deal with a reduced supply and higher costs.

Economies in the Asia-Pacific, therefore, have been doing their utmost to secure their fuel supply.

Diesel sold to the Philippines

The Philippines, which declared an energy emergency last month, recently obtained 329,000 barrels of diesel to add to its supply. The Philippine News Agency reported, however, that the shipment had been sent "from Malaysia.” 

“This latest shipment from Malaysia further strengthens our supply position at a time when external risks remain, and the situation in the Middle East continues to evolve,” the Philippines’ Department of Energy Secretary Sharon Garin was quoted as saying on April 11.

The reporting of the shipment sparked problems on Malaysia’s social media.

According to Datuk Fahmi Fadzil, the Communications Minister and spokesman for the Malaysian government, the issues had come from a misunderstanding about shipping logistics movements in Johor waters.

He explained that the diesel sold to the Philippines had not been processed by Petronas, the national oil and gas company owned by the government of Malaysia, nor was it processed by any other Malaysian company, he added. 

Instead, it had been sold by Vitol, a Singapore-based independent trader of energy, crude oil, and petroleum products.  Mr Fahmi added that the fuel sold to the Philippines had been stored in a Johor facility at Tanjung Pelepas, and the vessel carrying the fuel had sailed from Malaysian waters.

He explained, however, that “in the context of shipping, vessels in Johor waters are considered to be departing from Malaysia. This led to misunderstanding among some internet users who claimed that the diesel was sent from Malaysia.”

Even Prime Minister Anwar Ibrahim spoke up to quash the rumours, saying, “We are not giving oil to the Philippines. We have also not stopped (Vitol). We allowed them to proceed. The oil belongs to another party in a foreign agreement.”

Petronas also issued a statement denying having sent a shipment of diesel to the Philippines, saying it has no agreement with the neighbouring country involving the supply of diesel. /TISG

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