KUALA LUMPUR, April 18 -- Malaysia produces crude oil, but it still relies heavily on imports to meet domestic fuel demand that is nearly double local output, while global supply disruptions are also pushing up costs across the oil supply chain.

The situation reflects both structural supply gaps at home and rising volatility in international oil markets following tensions in West Asia, the Finance Ministry explained today.

Malaysia continues to operate a "sell high, buy low" strategy, exporting higher-value crude while importing other grades of oil to ensure sufficient supply for domestic consumption.

This allows the country to maximise revenue from exports while keeping enough crude available for refining petrol, diesel, liquefied pet...