00:01Conflict in the Middle East, threats to shipping lanes and rising oil prices has been hard to miss
00:07and social media is buzzing with warnings for Malaysians at the pump.
00:11But here is what is really happening and five things you should know.
00:15First, global oil prices are rising and the Strait of Hormuz has a lot to do with that.
00:21The Strait of Hormuz sees roughly a fifth of the world's traded oil pass through daily
00:26and even the mere threat of conflict can disrupt tanker movements
00:30and spike shipping insurance and logistics costs almost instantly.
00:35Second, Malaysia is not fully insulated but not defenceless either.
00:40Some assume Malaysia is completely shielded because it produces oil and gas
00:45but that's not entirely the case as oil is not priced by the country that pumps it.
00:50It is priced by global markets.
00:53Third, Malaysians will not be paying more at the pump.
00:57On March 11th, the unsubsidised RON95 price rose by $0.60 to RM3.27 per litre.
01:04Subsidised RON95, however, remains at RM1.99 thanks to the government's Budi95 programme.
01:12Fourth, Petronas does more than most of us realise.
01:15The national oil company operates across the petroleum value chain, from exploration to refining, LNG exports, petrochemicals and international trading.
01:26This integrated structure matters when markets get volatile.
01:30And lastly, this is a global issue, not just Malaysian.
01:33When the strait is threatened, prices go up in Japan, Germany, South Korea, India and Brazil, just as it does
01:42for Malaysia.
01:43Energy analyst Samirul Arif Othman says that true protection isn't in isolation,
01:48but in strong institutions, planning and policy tools, adding that institutions like Petronas and government subsidy programmes create a buffer
01:58that moderates the impact of global turbulence.
02:01On YouTube, FMT.
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