Hundreds of ExxonMobil dealers in Malaysia face closure after demands for steep increases in petrol station rents from the US oil giant, a lawmaker said today.

Some 600 operators were told they faced rent hikes of between 150 to 200 percent for the petrol stations, owned by ExxonMobil, when renewing contracts with the company earlier this year, said MCA senator Lee Chong Meng.

"Their contracts expired in April this year so they started negotiations. Since then, they have not reached agreement with ExxonMobil because they want to increase the rental by 150 to 200 percent," Lee, who attended a protest meeting organised by angry dealers today, told AFP .

Lee said an association representing dealers would meet with Malaysia's domestic trade and consumer affairs minister Shafie Apdal later today but warned some 200 stations would run out of petrol if a solution was not found.

"If the problems is not settled amicably, about 200 stations will run out of petrol by tomorrow," said Lee.

Lee said some operators would be forced to renew their contracts with ExxonMobil, while those refusing would face supply cut-offs and evictions.

"If the operators fail to renew the contract by tomorrow, ExxonMobil will cut off their supply of petrol ... ," he said.

ExxonMobil in Malaysia said it would respond as soon as possible to the issue.