Fahmi, who is also the communications minister, said the shipment was merely transiting through local waters under commercial arrangements.

He said checks with the National Economic Action Council (MTEN) and other agencies had confirmed the matter.

“I read the report from an Australian news agency stating that 200 million litres of diesel (were headed for Australia) involving several countries, including Brunei and Malaysia.

“Checks with the MTEN communications centre and other parties confirmed that this is not Malaysian diesel,” he told reporters after the weekly Cabinet meeting today.

Earlier today, Australian prime minister Anthony Albanese said an additional 200 million litres of diesel sourced from South Korea, Brunei and Malaysia would be shipped to Australia under a federal export finance scheme.

Last week, Prime Minister Anwar Ibrahim denied that Malaysia planned to sell oil to Australia, saying talks with Albanese focused more on strategic needs of both countries.

Anwar said his discussions with his Australian counterpart touched on reciprocal needs, including Malaysia’s demand for phosphate from Australia, while Australia is seeking certain commodities from Malaysia, such as urea.

Separately, the Prime Minister’s Office said the shipment involved diesel sourced from other countries but stored in Malaysia, while the sale involved a contract between Viva Energy and BP Australia.

“The Malaysian government and Petronas have not sold our oil or diesel, as stated by the prime minister before this,” it said in a statement.