Petrol & Diesel Price Up Again?

Petrol price Up Again?

In less than 2 years in office, Prime Minister Pak Lah has been ruling in the world of economic & likely, political uncertainties. The price of crude oil have risen sharply over the last two years from USD26 to the present price that lingers in the USD60 region.

In view of this development, without doubt, the domestic fuel prices has caused increase of far greater amount of subsidies.

Recently, the Prime Minister has given a broad hint that the retail price of petrol could be revised because of the high price of crude oil.

“We have to make preparations, and if they are tough and a little terrible, we all have to be patient,” Datuk Seri Abdullah Ahmad Badawi said when asked whether the Government would increase petrol prices. He was speaking to reporters at the end of his visit to the Integrity Institute of Malaysia here yesterday.

Petrol prices went up by 10 sen a litre last month. Abdullah, who is also Finance Minister, said the Government would also have to review this year’s economic forecast. “We have to make new forecasts which take into account the high price of petroleum,” he said.

Bank Negara had earlier forecast that the Gross Domestic Product this year would be between 5% and 6%. Asked whether petroleum subsidies would be removed, he said that was not something which was impossible. He said action was necessary as the price of petroleum was very high now. The price of crude oil surged to a record US$60 (RM228) plus per barrel on June 20.

Without doubt, with the increase in crude oil, we should in norm, see a parallel increase in the price of fuel. But then, we should not forget that Malaysia is a net exporter of crude oil. The phenominal increase in the price of crude oil would have also in parallel, increase the revenue of Petronas, which is a wholly owned corporation of the Malaysian Government and the citizens of Malaysia.

But, the way Petronas has behaved, it is as if they are privately owned. It must be remembered that the wealth of Petronas is also the wealth of the nation, as these wealth should be utilized for the benefit of the nation as a whole, including consideration for using part of the gains to offset the subsidies.

In reality, Petronas would be managed integratively with the Federal Reserve, i.e. Bank Negara, and that the nation should not need to borrow extensively externally to fund domestic economic development, as is done thus far.

Somehow, the wealth of Petronas is taken to act as if they are privately owned by individuals, benefitting selective group of people, and played no part in nation building, apart from using the money for rescue operations for failed banks caused by malpractices and mismanagement and also propping distressed financial institutions; plus some individuals.

In a nation that is blessed with black gold, a gift from God, it have brought in tremendous amount of wealth, which have not shown to have been used for the people of the nation. There isn't any transparency on the subject organization.

It is a mockery of a system that has a vision of an developed nation in the year 2020.