Tuesday, June 10, 2008

Oil Money - who will have the last laugh to the banks?

Che det wrote :

Can the Government subsidise? I am the “adviser” to Petronas but I know very little about it beyond what is published in its accounts. What I do know may not be very accurate but should be sufficient for me to draw certain conclusions.

Roughly Malaysia produces 650,000 barrels of crude per day. We consume 400,000 barrels leaving 250,000 barrels to be exported.

Three years ago the selling price of crude was about USD30 per barrel. Today it is USD130 – an increase of USD100. There is hardly any increase in the production cost so that the extra USD100 can be considered as pure profit.

Our 250,000 barrels of export should earn us 250,000 x 100 x 365 x 3 = RM27,375,000,000 (twenty seven billion Ringgit).

But Petronas made a profit of well over RM70 billion, all of which belong to the Government.

By all accounts the Government is flushed with money.

But besides petrol the prices of palm oil, rubber and tin have also increased by about 400 per cent. Plantation companies and banks now earn as much as RM3 billion in profits each. Taxes paid by them must have also increased greatly.

courtesy Chedet.com

* * * * * * * * * * * * * * * * * * * * * *

Wow, that’s quite an education and a revealation.

RM70 billion with lower margin of profits, “the government is flush with money”, how true. Add the portion of the subsidy retained by the government as it should be lower than the previous RM56 billion, because now the subsidy is RM0.30 sen per liter. We all knew that., no matter how dumb, we the Rakyat are The irony is that, it is not through our own institutions or our ‘free’ media but through “clowns” in the eyes of the white house, our biggest trading partner. Through chavez, through Ahmadinejad flamboyant statements. Chavez sells fuel at 0.16 sen per liter would literally asked Venezuleans to be happy, jump and dance everytime the prices goes up.

On the contrary, Malaysians are asked to be sad and stomach the rises through our own pockets. What ever happens to the rezki bestowed by the Great One to our country or nation? Our national oil industry makes money for the government coffers and the rakyat too contributed more to the coffers, from the same resource by buying it back at high or near market prices. It seems that the rakyat is given a near double jeopardy.

What we need is more transparency and accountability on how that money is spent. Che Det had “flip and flop” in this aspect, we previously hope the Mr. Clean Pak Lah will be much better than his predecessor, but how sad we Malaysian were, it was not to be. After giving him a four year trust, to demonstrate his cleaness. We do not see any change. Mere lips services from ‘to fight big time against corruption’ to, to get hold of the little Napoleans by their horns.

We hope the last election will move something. Yes, it has, well at least announce in Kota Kinabalu for Sabahan. Will it materialized and materialized properly? Without all the, now seems the established norms of financial misuse, abuse and mismanagement. The accounts of what was given and received had huge discrepancy for the State of Terengganu and make the present MB (Chiel Minister) of Terengganu to voice out.

Then there were simple and very objective questions raise by the Pakatan Rakyat state governments for the accounts of the sizeable amount of money already spent in a very short period. As usual, the whole issue was politicized and these shows how the present federal government mocks the Rakyat, without any meaningful feedbacks or reply. Only generalized statements for emotional consumption. For the rest of the argument on the fairness of the price of oil, please refer, I earnestly hope you can see it, objectively.

I wonder – who has the last laugh to the banks! For the last Cabinet under Pak Lah it was one Patrict Lim, at least for Terengganu, that's according to Che Det. Please revealed more . . .

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