Logistics Costs, Insurance Premiums Push Oil Prices Up – Anwar

PUTRAJAYA, April 9 (Bernama) — Prime Minister Datuk Seri Anwar Ibrahim said the rise in oil prices following the West Asian conflict is not solely due to supply shortages but is also driven by higher risk premiums and escalating logistics costs.

He explained that although key fuel supply routes remain operational and shipments to Malaysia have not been disrupted,overall costs have risen significantly due to increased insurance and transportation expenses.

“The oil that was procured before the conflict has been delayed in the Strait of Hormuz and is now being redirected to Pengerang,contributing to the higher costs.

“Insurance premiums have surged by more than 100 per cent, while freight charges have also increased substantially.

“This means that the oil that was initially expected to be processed at a lower cost in Pengerang is now significantly more expensive,” he said when speaking at the Transport Ministry’s monthly assembly here today.