MALAYSIA continues to rely on imported crude oil despite being an oil-producing nation, as domestic demand has outpaced local production by a significant margin, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar, who is also Finance Minister, said Malaysia’s daily crude oil consumption stands at about 700,000 barrels, compared with domestic production of approximately 350,000 barrels per day.
He said crude oil sourced locally and from overseas is refined into essential petroleum products, including petrol, diesel, liquefied petroleum gas (LPG), aviation fuel and other downstream products.
"Singapore is the main source of imported petroleum products for Malaysia as the country serves as a major regional hub for petroleum refining, storage and trading in Asia.
"Its close proximity to Malaysia, large refining capacity and efficient logistics network enable petroleum supplies to be obtained faster, competitively and continuously to meet domestic market requirements," he said in a written parliamentary reply published on the Parliament website.
Anwar was responding to Ipoh Timur MP Lee Chuan How, who sought details on the proportion of domestic versus imported supplies for petrol, diesel, aviation fuel and LPG used in Malaysia.
The Prime Minister said Malaysia’s crude oil supply is derived from a combination of local production and imports, with around 48 per cent coming from domestic sources while the remaining supply is imported.
Of the imported crude oil, about 38 per cent is transported through the Strait of Hormuz, while seven per cent comes from Southeast Asia, West Africa and other sources. Another seven per cent is sourced from West Asia and other countries.
Singapore remains Malaysia’s largest supplier of imported diesel between 2024 and the first half of 2026, although volumes have declined over the period.
Diesel imports from Singapore stood at 542 million litres in 2024 before falling to 492 million litres in 2025 and about 93 million litres in the first six months of 2026.
Singapore also remained a key supplier of petrol, with imports totalling 61 million litres in 2024, increasing to 68 million litres in 2025 and reaching 21 million litres in the first half of 2026.
The LPG market, meanwhile, saw competition among several major suppliers.
In 2024, Singapore was Malaysia’s largest LPG supplier, providing 307 million kilogrammes, followed by the United States with 253 million kilogrammes and Norway with about 239 million kilogrammes.
The US became the largest LPG supplier in 2025 with 299 million kilogrammes, ahead of Singapore at 269 million kilogrammes and Norway at 198 million kilogrammes.
However, Singapore regained its position as Malaysia’s top LPG source in the first half of 2026, supplying 135 million kilogrammes, followed by Norway with 98 million kilogrammes and Thailand with 28 million kilogrammes.
The latest figures highlight Malaysia’s continued reliance on regional energy supply chains despite its status as a crude oil producer, as rising domestic consumption and demand for refined petroleum products continue to shape the country’s energy security strategy. - July 16, 2026
