SHAH ALAM, April 13 — Claims that Malaysia has sent diesel to the Philippines has sparked confusion among locals after a report by the Philippine News Agency (PNA) went viral on social media.
The report claimed Manila had received 329,000 barrels, or 52.31 million litres, of diesel supposedly from Malaysia to address energy constraints in the archipelagic country.
The same report said it was the second such shipment, after the Philippines received 142,000 barrels of diesel from Japan on March 26.
In Malaysia, the report quickly became a hot topic on social media. Many questioned the claims, especially in the current context where Malaysia is facing fuel subsidy retargeting exercises and living cost pressures.
This sparked various speculations and assumptions about government policies and domestic energy supply management.
To settle the discourse, the National Economic Action Council (MTEN) said in an official statement that the 329,000 barrels of diesel the Philippines received were not from Malaysia, and advised the public not to speculate about the matter, instead encouraging them to refer to official government sources for legitimate information.
Petronas has also issued a statement denying involvement in the diesel delivery, saying it has never entered a deal with any Philippine party on the matter.
The national oil company also said its priority is to ensure domestic fuel supplies are stable and sufficient.
Before the controversy arose, Maybank Investment Bank Bhd said in a research note that the Philippines is the ASEAN member most exposed to fuel depletion risks, as 95 per cent of the country’s crude oil is imported, followed by Vietnam (88 per cent), Malaysia (69 per cent), Thailand (59 per cent), and Singapore (52 per cent).
These countries are thus vulnerable to effects of the West Asia conflict, which has resulted in the closure of the Strait of Hormuz, through which a significant amount of the world’s crude oil and liquefied natural gas (LNG) shipments transit.
Philippine supply from VITOL, Trafigura firms
On April 7, PNA reported that the Philippines has enough oil for about 50 days.
Philippine Energy Department deputy secretary Sandy Sales said around 900,000 barrels of oil are to arrive in the country in April, adding that an early shipment of 300,000 barrels, procured from global commodities company VITOL, would arrive from Malaysia through Singapore.
Two more shipments of 300,000 barrels each would arrive later, contracted through VITOL and Trafigura, as well as from North Asia and India.
Prime Minister Datuk Seri Anwar Ibrahim urged that the controversy be put to rest as claims of Malaysia delivering diesel to the Philippines are simply not true.
“(VITOL) did have a deal to bring oil to sell to the Philippines. It’s not that (Petronas) supplied the Philippines. But we didn’t stop (the shipment). We gave them passage. Other (nation’s) oil in a foreign deal.
“I hope this controversy stops, and (that everyone) focuses on nation-building in today’s challenging economic situation,” Anwar said.
