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Industry seeks clarity on VLSFO blending regulations in customs-controlled facilities

Stakeholders are calling on authorities to clarify rules governing the storage, transfer and blending of very low sulphur fuel oil in customs-controlled storage facilities across the region.

LSN Malaysia · 31 August 2026

Industry seeks clarity on VLSFO blending regulations in customs-controlled facilities

Industry players have urged Malaysian authorities to provide clearer guidelines on regulations governing the handling of very low sulphur fuel oil (VLSFO) at customs-controlled facilities.

The appeal comes as petroleum traders and bunker operators seek definitive clarity on rules covering the storage, transfer and blending of VLSFO within bonded warehouses and customs-supervised terminals. The lack of transparent regulatory frameworks has created uncertainty for market participants attempting to comply with evolving fuel specifications and international standards.

Stakeholders have emphasised the need for authorities to issue comprehensive guidance that outlines permissible blending operations and documentation requirements for VLSFO handled under customs supervision. Clear regulations would help streamline operations and reduce compliance ambiguity across storage and distribution networks.

The request reflects broader industry concerns about aligning regional practices with international maritime fuel standards, particularly as the maritime sector transitions to lower-sulphur fuels. Authorities have been urged to consult with industry representatives to develop practical regulatory frameworks that facilitate legitimate commercial operations while maintaining proper oversight.