Wednesday, July 16, 2008

Petroleum profit

I have not written for quite some time, I don't intend to comment on all issues, but at least some of my comment had been argued elsewhere. Like the issue on police roadblocks, i posted it at 8am immediately after arriving at office, later it was hotly debated in parliament. And some of my earlier comment on the economy, hit the bulls-eye.

Well yesterday Petronas reported massive profit, it is not surprising with the current crude oil price in the market. BUT, the question is, with so much royalties paid to the federal and state government, how was the money utilized? Remember when Terengganu fell to the opposition, the royalty was withdrawn and channeled it through the federal government. Now it is back to the state - see the unprofessional tactics of politic! Is there a special accounts for it?

If some quarters are afraid that if Petronas give away all their profit to the government, it would lead to the fall of Petronas as a corporate company, I suggest nationalized it and make it as another government agency like EPF or Inland Revenue, all incomes are directly owned by the government!

Again I question, why is our retail price of petrol is only 10 sen cheaper than in China, the major importer of oil. The massive demand for oil started after China open its economy and relax on personal wealth. From bicycle riding senior government official, now transformed into multi-millionaire tycoon, a large number of people in China had thrown away their old bicycle and exchanged for cars. Beijing is no longer a city for bicycle but a modern metro capital.

Back in Malaysia, we are an oil producing country, a net exporter but our rakyat has to bear a higher oil price. Since we are producing our own petrol, then why should we need to have our price at par with the global price. It doesn't make sense! It is our own commodity and we are not a member of OPEC, we can just keep the fuel for own consumption. Even oil mining contribution to the GDP is very insignificant compared to the Services Sector.

Like i said before, the government are too obssesed to have a very rosy and attractive statistics rather than the showing the truth- well "truth hurts".

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