Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 15.84 Billion |
| Market Size (2030) | USD 21.10 Billion |
| Growth Rate (2025 - 2030) | 5.90% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Malaysia Refined Petroleum Products Market Analysis by Mordor Intelligence
The Malaysia Refined Petroleum Products Market size is estimated at USD 15.84 billion in 2025, and is expected to reach USD 21.10 billion by 2030, at a CAGR of 5.9% during the forecast period (2025-2030).
Malaysia maintains a strategic position in Southeast Asia's petroleum products market, supported by robust petroleum refining infrastructure and ongoing capacity expansions. The country operates seven major refining facilities with a combined capacity of 880,000 barrels per day, positioning it as a significant player in the regional refined petroleum products landscape. PETRONAS's landmark investment of USD 16 billion in the Refining and Petrochemicals Integrated Development Project (RAPID) in Johor demonstrates the country's commitment to expanding its refining capabilities. This facility, with a nameplate capacity of 279,000 barrels per day, represents a significant advancement in producing Euro V standard diesel fuel and gasoline, marking Malaysia's transition toward cleaner fuel production.
The market is witnessing substantial infrastructure development, particularly in the LPG segment, with major investments in storage and handling facilities. A notable development is GPS Group's new LPG storage terminal in Port Klang, which commenced operations in 2023, offering an annual throughput capacity of approximately 1.2 million tons per year. This facility enhances Malaysia's capability to handle VLGC and pressurized LPG vessels, strengthening its position as a regional distribution hub. The terminal's advanced automation and direct pipeline transfer capabilities represent a significant advancement in the country's LPG infrastructure.
The petrochemical sector is emerging as a crucial driver of refined petroleum products demand, particularly for LPG as a feedstock. This trend is exemplified by ChemOne's announcement in 2023 of a USD 4.4 billion investment in the Pengerang Energy Complex, scheduled for completion by 2026. The facility's planned processing capacity of 150,000 barrels per day of condensate, along with its capability to produce 2.3 million metric tons per annum of aromatics, demonstrates the growing integration between refining and petrochemical products operations in Malaysia.
Malaysia's refined petroleum products market is increasingly focusing on sustainability and cleaner fuel standards. The country has implemented stringent fuel quality requirements, particularly for fuel oil, aligning with international environmental standards. The government's commitment to reducing emissions is reflected in the modernization of refining facilities to produce cleaner fuels, including Euro 5 standard products. This transition is supported by investments in advanced refining technologies and infrastructure upgrades, positioning Malaysia as a leader in clean fuel production within Southeast Asia.
Malaysia Refined Petroleum Products Market Trends and Insights
Surging Demand for Refined Petroleum Products
Malaysia has witnessed substantial growth in refined petroleum products demand, driven by increasing industrialization and a robust automotive sector. The country's refining capacity has expanded significantly, with current refinery throughput reaching 569 thousand barrels per day in 2023, marking a notable 26% increase from the previous year. This expansion is further supported by major international investments, such as China's Rongsheng Petrochemical Co. Ltd's commitment of USD 16.74 billion in April 2023 to establish a new refining facility in Pengerang, Johor, demonstrating strong confidence in Malaysia's downstream petroleum derivatives sector.
The automotive sector continues to be a crucial demand driver, with the Malaysia Automotive Association reporting impressive vehicle sales of 799,731 units in 2023, compared to 721,177 units in 2022. This growing vehicle population directly contributes to increased fuel consumption, with Malaysia's daily oil consumption reaching 894 thousand barrels in 2022, representing a 15% year-over-year increase. The country's strategic focus on expanding its downstream infrastructure and becoming an oil and gas storage and trading hub further reinforces the positive demand outlook for refined petroleum products.
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Growing Demand from Petrochemical Sector
The petrochemical sector has emerged as a significant driver for Malaysia's refined petroleum products market, particularly in the LPG segment. The country has maintained steady LPG production levels, with approximately 2.7 million metric tons produced in 2021, showcasing the sector's stability and growth potential. This growth trajectory is supported by major infrastructure developments, such as the GPS Group's new LPG storage terminal in Port Klang, which commenced operations in May 2022, offering an impressive annual throughput capacity of 1.2 million tons and the ability to handle VLGC vessels.
The sector's expansion is further evidenced by significant upcoming projects, including the USD 4.4-billion Pengerang Energy Complex (PEC) aromatic complex announced in June 2022, which will process 150,000 barrels per day of condensate when fully operational by 2026. Additionally, the industry is witnessing a transition toward sustainable practices, as demonstrated by Ecoceres' announcement in April 2024 to establish a biofuel refinery with an annual capacity of 350,000 metric tons by the second half of 2025. These developments, coupled with the growing demand for petrochemical products such as plastics, nylon, and polyester from the manufacturing industry, continue to drive the expansion of Malaysia's refined petroleum derivatives market.
Segment Analysis: By Product
Petrol Segment in Malaysia Refined Petroleum Products Market
The gasoline segment dominates the Malaysia refined petroleum products market, holding approximately 46% market share in 2024. This significant market position is primarily driven by Malaysia's heavily subsidized motor fuel prices, which are among the lowest in the ASEAN region. The segment's dominance is further strengthened by the availability of two retail varieties - the more economical RON 95 and the premium RON 97 types, catering to different consumer preferences and vehicle requirements. The growing demand for small vehicles, including two-wheelers and passenger cars, continues to drive gasoline consumption in the country, though this growth is moderately tempered by the increasing adoption of electric vehicles in the small vehicle segment.
LPG Segment in Malaysia Refined Petroleum Products Market
The LPG segment is emerging as the fastest-growing segment in the Malaysia refined petroleum products market, projected to grow at approximately 4% during 2024-2029. This robust growth is primarily attributed to the increasing adoption of LPG as a cooking fuel in residential sectors and its growing industrial applications. The segment's growth is further supported by significant investments in LPG storage and handling infrastructure, exemplified by recent developments like the GPS Group's new LPG storage terminal in Port Klang. The government's initiatives to reduce emissions and replace polluting cooking fuels with cleaner alternatives have also created a favorable environment for LPG adoption, particularly in both urban and rural households.
Remaining Segments in Malaysia Refined Petroleum Products Market
The diesel fuel and other products segments continue to play vital roles in Malaysia's refined petroleum products market. The diesel fuel segment primarily serves the commercial and heavy vehicle sector, with its market dynamics influenced by the government's biodiesel program and the slower adoption of electric alternatives in heavy vehicles. The other products segment, which includes aviation fuel, kerosene, and specialty fuel products, caters to specific industrial and commercial applications, supporting various sectors from aviation to manufacturing. Both segments are experiencing evolutionary changes driven by environmental regulations and technological advancements in their respective end-use industries.
Competitive Landscape
Top Companies in Malaysia Refined Petroleum Products Market
The Malaysian refined petroleum products market is dominated by established players, including Petroliam Nasional Berhad (PETRONAS), Shell PLC, Chevron Corporation, and FIVE Petroleum Malaysia Sdn Bhd. These companies are actively pursuing product innovation through the introduction of higher-grade fuels meeting Euro 5 specifications and enhanced fuel products formulations with proprietary additives. Operational excellence is being achieved through the modernization of refineries, digitalization of retail operations, and implementation of automated systems at storage terminals. Strategic initiatives focus on expanding petroleum retail networks, upgrading existing stations with non-fuel amenities, and strengthening distribution infrastructure. Companies are also emphasizing sustainability through investments in renewable energy integration and the development of cleaner fuel alternatives. The market is witnessing increased collaboration between domestic and international players to enhance technological capabilities and market reach.
Strong Local Players Lead Market Growth
The Malaysian refined petroleum products market exhibits a balanced mix of state-owned enterprises, international oil majors, and emerging local players. PETRONAS maintains a dominant position through its extensive downstream infrastructure and government backing, while global giants like Shell and Chevron leverage their technological expertise and international supply chains. The market structure is characterized by moderate consolidation, with the top players controlling significant market share through their established retail networks and refining capacities. Joint ventures and strategic partnerships are common, particularly in developing new storage terminals and expanding distribution networks.
Recent market developments indicate a trend toward increased participation from local players and regional companies looking to establish a stronger presence. The industry is witnessing strategic alliances between established players and new entrants, particularly in areas such as LPG distribution and retail network expansion. Companies are also focusing on vertical integration strategies, from refining to petroleum retail operations, to maintain competitive advantages and ensure supply chain stability. The market remains attractive for investment, with several players expanding their infrastructure and modernizing existing facilities.
Innovation and Sustainability Drive Future Success
Success in the Malaysian refined petroleum products market increasingly depends on companies' ability to balance operational efficiency with environmental responsibility. Incumbent players are focusing on modernizing their retail networks with digital solutions, expanding non-fuel services at retail stations, and investing in cleaner fuel technologies. Market leaders are strengthening their positions through customer loyalty programs, enhanced product offerings, and improved service quality. The ability to maintain stable supply chains while meeting evolving environmental regulations has become crucial for sustained market presence.
For new entrants and smaller players, differentiation through innovative service offerings and strategic partnerships presents opportunities for growth. Companies need to focus on developing specialized market segments, such as premium fuels or specific industrial applications, while building strong relationships with local stakeholders. Success factors include the ability to navigate regulatory requirements, particularly regarding fuel specifications and environmental standards, while maintaining cost competitiveness. The market's future trajectory will be shaped by players' capacity to adapt to changing consumer preferences, embrace technological advancements, and implement sustainable practices across their operations.
Malaysia Refined Petroleum Products Industry Leaders
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Chevron Corporation
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Petroliam Nasional Berhad
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Shell PLC
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FIVE Petroleum Malaysia Sdn Bhd
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Petron Malaysia Refining & Marketing Bhd
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2023: The automobile company Ford launched a new variant of the car known as Ranger Raptor, which consists of a 2.0 L bi-turbo diesel version. According to the company, the diesel variant has the highest efficiency levels and is relatively cheaper than the petrol variants.
- April 2022: Petroleum Sarawak Berhad launched a multi-fuel station in DarulHana that is likely to cater to vehicles that are powered by hydrogen, electricity, petrol, or diesel.
Malaysia Refined Petroleum Products Market Report Scope
Refined petroleum products are produced in a refinery. They are derived from crude oil through processes such as catalytic cracking and fractional distillation.
The market includes the demand and supply of different refined products, including petrol, diesel, LPG, kerosene, aviation fuel, and fuel oil across Malaysia. The report also covers the market size and forecasts for the Malaysian refined petroleum products market. For each segment, the market sizing and forecasts are done based on revenue (USD).
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Key Questions Answered in the Report
How big is the Malaysia Refined Petroleum Products Market?
The Malaysia Refined Petroleum Products Market size is expected to reach USD 15.84 billion in 2025 and grow at a CAGR of 5.90% to reach USD 21.10 billion by 2030.
What is the current Malaysia Refined Petroleum Products Market size?
In 2025, the Malaysia Refined Petroleum Products Market size is expected to reach USD 15.84 billion.
Who are the key players in Malaysia Refined Petroleum Products Market?
Chevron Corporation, Petroliam Nasional Berhad, Shell PLC, FIVE Petroleum Malaysia Sdn Bhd and Petron Malaysia Refining & Marketing Bhd are the major companies operating in the Malaysia Refined Petroleum Products Market.
What years does this Malaysia Refined Petroleum Products Market cover, and what was the market size in 2024?
In 2024, the Malaysia Refined Petroleum Products Market size was estimated at USD 14.91 billion. The report covers the Malaysia Refined Petroleum Products Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Refined Petroleum Products Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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