Malaysia: Oil price hikes

Sikmanding reports that all over Malaysia the hot topic of discussion is still the fuel price increase and its dreaded effects.


  • Temberang

    Why does a nation which exports HIGH grade oil with low sulfur content lose money due to oil subsidy to its population?
    Why does a nation which has huge natural resources such as palm oil, rubber, etc does not make any money?

    It is also reported that Malaysia is losing one million ringgit per day due to lost custom and taxes due to deficiencies in the custom’s department.

    With such a huge revenues, how is the Malaysian government losing money? Why?

    I used to work for SHELL, and SHELL is making HUGE amount of money (in Malaysia) before any price increase. They are making even more money (now) after the price increase.
    How to justify the government’s explanation that they (the oil producers) are losing money due to petrol and diesel subsidy to the Malaysian population?

    Can the government show the population the account statement of Malaysian’s budget?

  • Zalan

    Of course Shell makes lots of money, and so does Petronas. I’ve just gone through Fortune 500 and Petronas climbed to 95 in the ranking of world’s largest corporation for 2007, and number 8 in terms of profit (USD 18.118 billion). But since large sum of Petronas money goes to subsidise domestic use of petrol, it could not sustain this performance if it continues to subsidise when the market price of crude oil keep rising. I’m sure that with the increase in world oil price, petronas will earn more, but so does it’s expenditure for subsidies. In the long run, they still loses.

    In my opinion, the price increase is inevitable and understandable. What upsets me the most is that the government couldn’t care less and simply reduce large amount of subsidise at one go, instead of a gradual increase which could give more time for us citizens to change our lifestyles…

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