Tuesday, June 10, 2008

The Pseudo-secret of Fuel & Gas Subsidy



The records for 2007 shows that 41.5% of Malaysia's TOTAL SUBSIDY amounting to RM16.2bil went to the Independent Power Producers such as YTL Power (Paka & Pasir Gudang), Segari-Malakoff Bhd, Genting Sanyen, Powertek, Port Dickson Power Bhd, Projass, Teknologi Tenaga Perlis, Pahlawan Powers, Prai Power,Panglima Power, Kapar Energy ventures and various others - that means RM6.7bil was subsidized to IPPs out of the RM16.2b subsidy for petroleum product subsidy for 2007.

The subsidies for education is 9%, rice is 2.2%, Transportation is o.5% and social subsidies is 0.6%.

Amazing? The peoples money are used to subsidies private giant ultra-rich companies while the rakyat had now to pay the full cost of the fuel albeit with a so-called 30sens subsidy. The so-called 30sens subsidy per litre of petrol is largely attributed to the IPP subsidies. With such lucrative and lop-sided contracts given to the IPPs it is no wonder that the rakyat is fully screwed downside up and the irony is they are still blur blur and have yet to understand fully the deleterious coquetting of the race-based political leaders of the ruling party who are still using the ketuanan thing to screw-up their mindset and hopefully kept them stupid and calumnious.

25 comments:

Anonymous said...

Jeff Ooi has mentioned this during the fuel hikes.

Seems YTL family are the UNTOUCHABLE.

And guess what, some jokers still want to defend the IPP, perhaps YTL PR or associate on work. ;)

Maverick SM said...

Moo_t,

The main problem is the Contract terms that had been agreed. Those contracts are lop-sided and extremely lucrative.

Anonymous said...

The IPPs' agreements were sealed under Mahathir time. These were not the only daylight robberies, there were highway daylight robberies and many other looting too by Mahathir and Gang then and now by Abdullah & Gang.

Malaysia is going to the dog under these crooks and thieves.

warrior2 said...

are you sure of what you wrote? things dont add up!

Anonymous said...

We need transparency in our government expenditure, administration and etc.

If not they would use public money like it fall from the sky.

Maverick SM said...

Victim,

Mahathir promote those privatisation; but I don't think he knew the consequences.

Warrior2,

I didn't create that table; it was from the govt websites.

Edi,

We have transparency and we have invisibleness.

sinkeh said...

Can I have your permission to utter a four letter word?

CaptainCaveman said...

That is why I say all form of fuel subsidy is to be stop. Why stop at us while those IPPs still being subsidized! Don't tell me the power-that-be can't do anything. Corruption, cronies and abuse of power!

When the poor individual taxi and school buses owners want to increase fare, the government say cannot! How to survive?!

Maverick SM said...

Gongkaukau,

Your message is already there in this statement.

CaptainCaveman,

You must understand the contractual aspects of IPPs and the govt will have to compensate the losses and damages arising if they should breach the contract by vitiating the terms as expressed.

CaptainCaveman said...

You are damn right Mav! The government "screwed" and having all the fun while the blur-blur rakyat ( me included ) had to "carry" the baby!

Maverick SM said...

CaptainCaveman,

Lest be assured that nature will take its due course and make amend.

CaptainCaveman said...

I don't trust politicians but I can't ignore Anwar statement about roll back the fuel hike if PR assume control of the federal government. Some may say PR is being populist but to me, the BN government had lost their credibility.

Anonymous said...

Mahathir again?

Maverick SM said...

CaptainCaveman,

Anwar is giving hope to the people; it is hope which the people aspires; but it is just hope for the better that counts!

透过镜头的光 said...

Maverick,
Why the electricity tariff still hike when those IPPs still being subsidized?
My electricity bill could be up to 67.4%(0.289 sen/kw up to 0.46 sen/kw)by next month.

CaptainCaveman said...

I maybe one voice one vote, but Mahathir again? NEVER!

Anwar? I can only hope, yes Mav for the better, as presently I don't see anyone as capable as Anwar.

Maverick SM said...

HC,

The electricity tariff hike and the IPP subsidization is two different thing.

TNB has sign contracts with IPPs at a given rate and capacity which cause TNB to pay for power unconsumed. So, that's the hike need. The subsidy of gas is a tripartite agreement with TNB, IPP and Petronas of which Petronas will sell the gas to IPPs at a fixed rate which is subsidized.

CaptainCaveman,

The question whether Anwar would be better is hypothetical and intuitive. It can be said that based on his current political philosophy and his belief as preached, he would be better; but that will have to be tested in an empirical situation by giving him a chance; I suppose.

CaptainCaveman said...

Thanks Mave and God bless.

Btw how can I join your chatbox? Can I?

Maverick SM said...

CaptainCaveman,

You're welcome to the chatbox. Just post your statements in the box and click go. Remember to put your name and url.

透过镜头的光 said...

Maverick,
Thanks for telling us !

warrior2 said...

SM, thats not what i meant!. Its your interprettion of those figures!

Unknown said...

That IPP - Teknologi Perlis is totally a Government Money Sucker. ITS a PROXY... they change name already into what eh? errr... i think the short form is GETS.

Still, most IPPs is the government money sucker. Sigh.

Maverick SM said...

HC,

You are welcome.

Warrior2,

The figures are from the table and I did not interpret at all. The $16.2b is stated as petroleum product subsidy and $18b is gas price subsidy. The amount subsidized to IPPs is $7.47b and not $6.7b which means my statement is lower than factual. The other aspects of subsidy is immaterial to this writing.

Terang Bulan,

Perlis IPP belongs to Abdul Hamid Pawanteh and possibly the former MB.

Anonymous said...

what we want is tht the ruling government do things with justice to the rakyat, responsible to the future generation and truth to themselves and all the citizens of the land and not benefiting a group of already super-rich or elites or a race.

Anonymous said...

what we want is tht the ruling government do things with justice to the rakyat, responsible to the future generation and truth to themselves and all the citizens of the land and not benefiting a group of already super-rich or elites or a race.