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Saudi Arabia Cuts Oil Supply to Asia: Are EVs Now the Only 'War-Proof' Cars?

Sofea Najmi

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As the Middle East conflict continues, Saudi Aramco has confirmed it will slash oil supplies to Asia for the second month in a row this April. For internal combustion engine (ICE) drivers, this isn't just a headline, it’s a direct, sustained threat to the wallet. But if you’re an EV driver, you might be feeling a sense of relief.


Before you celebrate, here is the brutal truth: Your EV is still powered by fossil fuels. However, there is a massive difference between the 'oil' Saudi is cutting and the 'fuel' powering your charger. While the oil world is under fire, your electrons are being quietly made right here at home.


The Technical Breakdown: Malaysia’s Grid Reality


GSO-1.png


Most Malaysians believe the grid is transitioning to green energy. While we are making progress, the 2026 reality is still dominated by fossil fuels. According to the latest data from the Grid System Operator (GSO) and Ember, Malaysia’s electricity generation mix remains heavily reliant on:

  • Coal (approx. 44-63%): Our largest source of power.
  • Natural Gas (approx. 25-40%): Our secondary "transitional" fuel.
  • Hydro & Renewables (approx. 12-18%): Growing, but still the minority.


Why Saudi’s Cut Doesn’t Stop Your Charger


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TNB Janamanjung


Malaysia does not burn Arab Light Crude to make electricity. 

  • Coal Power: We import the majority of our thermal coal from Indonesia (75%) and Australia (15%). Saudi’s oil cuts have zero impact on a coal-fired plant like Manjung or Tanjung Bin.
  • Gas Power: We are the world’s 5th largest exporter of LNG. While Peninsular Malaysia is importing more gas to meet data center demands, we rely on our own domestic production from Sabah and Sarawak.

The Financial Shield: Why Your EV is "War-Proof"


While petrol prices are a "wild west" of sudden hikes, EV drivers have a secret weapon: Energy Stability.


1. No "Sticker Shock" (The AFA Benefit)


In the petrol world, prices can change overnight. But for your home electricity, we use the Automatic Fuel Adjustment (AFA).

  • The Old Way (ICPT): Every 6 months, the government would announce a big price change. It was a "wait and see" game.
  • The New Way (AFA): Since July 2025, your bill is tweaked monthly in tiny increments. It’s a smoother ride—no more massive price shocks after half a year of waiting.

2. The "Buffer" (Coal vs. Oil)


When a war happens in the Middle East, Oil prices skyrocket instantly. But Malaysia’s electricity doesn’t run on Saudi oil; it runs on Coal and Natural Gas.

  • Oil is Volatile: A conflict in the Strait of Hormuz hits the petrol pump tomorrow.
  • Coal is Stable: We get our coal from Indonesia and Australia. It’s a different market entirely.
  • Real-World Result: In February 2026, while oil markets were panicking, many Malaysian EV drivers actually got a rebate (-2.7 sen/kWh) on their bills because global coal prices stayed steady.

The Bottom Line


Saudi-Aramco.png


Saudi Aramco can cut the "Light," but they can't stop your electrons. Your EV isn't 100% green yet, but it is 100% shielded from the specific oil politics happening this April.


Read: 5 Data-Backed Tips to Save Petrol: A Guide for Malaysian Drivers


Read: Top 10 CPOs In Malaysia


Tagged:

Saudi oil supply cut 2026
Strait of Hormuz oil crisis
Malaysia EV energy security
AFA rebate Malaysia
TNB generation mix 2026
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Written By

Sofea Najmi

A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv

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