Petronas profit rises while...

Petronas profits while people suffers from fuel hikes and price hikes around the country!!!

It was reported that oil prices and larger volume of sales lifted Petroliam Nasional Bhd's (Petronas) full-year profit more than a third to RM63bil from RM45.5bil a year earlier. The national oil company said dividend payments to the Government would likely be 30% of the company's future net profit instead of a flat RM30bil annual payment.

Petronas will be increasing its capital expenditure and plans to invest RM300bil over the next five years in growing oil and gas production and reserves. Petronas' capital investments last year amounted to RM34.9bil.



Money spent to purchase oil and gas reserves internationally to improve the quality of such assets abroad will be in addition to its planned capex schedule.....

Subsidies gone to the elites

While the government is calling for review of subsidies on fuel, sugar and other necessity items, it has been issuing about 100,000 APs (Approved Permits) per year to only 78 companies at RM10,000 per AP whilst the market price per AP is RM40,000. Well, this figure comes up to a total of RM4billion.

Gas is sold to IPPs at RM10 per barrel whilst the market price should be RM40 per barrel. How much gas is sold is not revealed to the public and it could cost billions of ringgit subsidy to IPP (Independent Power Producers) who in turn earns billions of ringgit.

If these malpractices can be stopped the savings or profits to the government are enough to pay for the subsidies for fuel, gas, sugar and etc to the common folks.

And it is just as much surprising and illogical that Sabah, one of the 'oil rich' producing 'states' in Malaysia should actually be enjoying the profits made by Petronas due to the world fuel price hike but unfortunately, the people are made to pay more for their own domestic fuel.

Will RON95 be increased again?

RON95 petrol price to be revised next month

A price revision of all petroleum products will determine whether the prices will be maintained or increased, says the government.

IPOH: Come next month, the government will review prices of all petroleum products, including the RON95 petrol, before deciding to retain them or otherwise, Domestic Trade, Cooperative and Consumerism Minister Ismail Sabri Yaakob said today.
He said the price revision to be conducted by the ministry and other agencies such as the finance ministry and the Performance Management and Delivery Unit (Pemandu) would determine whether prices would be maintained or increased, depending on the government’s subsidies.


“According to Pemandu’s subsidy rationalisation plan, there will be a revision every six months for subsidies on all products.

“The last revision we had for diesel, LPG and RON95, was in December, last year.

“This means that a mid-year revision will be carried out this month or early June… I can’t say what will happen but the revision will take place and the government’s subsidy burden is high,” he told reporters after officiating at the Ipoh Umno division delegates meeting here today.

He said this when asked on the current price of RON95 petrol, following the increase in price of On April 2, the price of RON97, which was floated according to current petrol prices, rose 20 sen to RM2.70 per litre, following the Middle East crisis, while the price of RON95 increased by five sen to RM1.90 per litre last December.


Ismail Sabri said that although he had previously stated that petrol prices would not go up at the moment, it did not guarantee petrol prices would stay the same forever, because the government was already burdened with subsidies for petroleum products.

“Last year, the government’s subsidy for petroleum products was RM8 billion when world fuel prices shot up, and we don’t see signs that it will drop. If this continues, the government will bear RM18 billion in subsidies this year, an increase of RM10 billion,” he said.

He said that should subsidies be reduced, the RM10 billion could be used to build more schools, village roads, housing projects and educational aid.

- Bernama