Sunday, May 25, 2008

Petrol prices stay, says Shahrir


We are grateful, really. In Indonesia, pump prices have gone up by 30 per cent, sparking unrest. Here, Minister Shahrir Samad says the Government won't increase prices.

I am grateful but I am curious as to how much more our Government earns now that oil prices have reached US$135 a barrel.
Because between March 2004 and March 2007, when oil prices were well below today's, Petronas raked in nearly RM250 BILLION! Not exactly a quarter of a TRILLION RINGGIT yet, but close.

So Shahrir is correct, and the Government is correct, too, on this one. And we are grateful, really.

General May 24, 2008 21:30 PM
Govt Has No Plans To Increase Fuel Price - Shahrir


MELAKA, May 24 (Bernama) -- The government has no plans to increase fuel price despite the price hike of petrol by 30 per cent in Indonesia beginning Saturday, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

On the contrary, he said the government was now focusing on managing the subsidy system to prevent leakage and smuggling.

"For the time being, we are not considering increasing the price of petrol and diesel although we are aware of the impact of the crude oil price hike in the world market.

For the rest of the Bernama story, go here.

36 comments:

nstman said...

From my analysis and calculation, Petronas should earn about RM1 trillion this year if oil prices hit US150 a barrel. If oil reaches US200 as predicted by Boone Pickens (this American bastard of an oil tycoon who is laughing his way to the bank), Petronas could race past the trillion mark. What is Petronas going to do with the money. Right now they are so rich they can afford to pay third rate musicians nearly a million bucks.

su-kj said...

Salam brader,

1. Hehehe jangan terkejut jika harga minyak tak naik?

2. But suddenly nanti kita lihat banyak kereta yang break down kat jalan raya?

3. Becos minyak + ?

http://sukj.blogspot.com

Kerp (Ph.D) said...

ahh...so its not necessary to change my lifestyle after all. will we get to see the Monsoon drain Cup again this year then? just cant wait to rub shoulder against billionaires' asses again.

Anonymous said...

The subdsidy benefits rich people who use big CC cars. This is unfair. People's money should be used evenly. But petrol subsidy benefits those driving mercedes 500 five time s or more than somebody using a proton or a kancil.

Justice Seeker

Anonymous said...

Anonymous,
Shahrir,
We really want to thank you for this consideration. It is our hope that BN do not renege on this, I suppose we can believe what you said and take YOUR words for it.
We hope we do not have to come back and give you any grief.
Thankful citizen

me said...

On the point of oil prices, the fact is, we need to raise it gradually.

Oil revenue will not last forever to fund subsidies and it is better that consumers are introduced to gradual price changes, instead of the the jolt we will feel if oil prices change suddenly, e.g. when output dips quickly.

cheers

Letting the time pass me by said...

I think we forget that the last time the oil prices increased just the day after the government said that the oil price will not increase..

And we still remember that the last time the government said that there will be no dissolution of parliment, the next day the parliment is dissolve..

Can we be sure that the government is not going to increase the price of oil? I just have to doubt that. Maybe it will not increase today, but we definitely do not know whether it will be increased tommorrow...

cucu pak sako said...

Morning Bro,

How for long Bro?
We must be a rich country?

'Only fools know the value of a lame horses'

Anonymous said...

hi mr rocky,

gov should start spending on renewable energy already and so many times already been said that we should improve the public transport to the max. we must not depend too much on this subsidy system. oil price increases 10%, petronas profit increases 10 percent, we increase fuel subsidy another 10%...then petronas cannot go anywhere! once the oil well is depleted then what next? anwar was saying that petronas profit should be used to subsidise petrol...what a moron (short term solution) how come thai products are cheaper than us albeit higher fuel prices. bakun should be completed long time ago...but thanx to pak lah it didnt...if bakun is fully operational now, his son will not be able to get the coal supply contract!

cheers
lady from hell (scotland)

fak lah you said...

Hi, the govt can say or do anything they want but the people are really suffering, crime situation is really bad bcos of the poor economy. I read recently a used car owner in Johor who had to close shop and later was caught for robbery. Why? the economy is bad bru but politicians are laughing their way to foreign banks to save up their hard-earned money. The prices of most essential consumer items have increased not little but so high bro. I'l bet you the price of petrol is going to go up very soon bru if waht Najib said on TV yesterday is to be considered...So what is Shahrir talking mah...Lu kaya meh!

eddy said...

Ya shahrir, kurang-kurang kan komen pasal Tun tu, jaga sikit harga barang jangan naik na.

Moo... said...

Got to be kidding....

Crude oil from the ground belongs to the Rakyat and not UMNO.

Giving back to the Rakyat in the form of subsidies is it too much to ask.

Why should we be grateful to recieve what is rightfully us???

Sharir should be reminded that the Government exists because of the Rakyat and not the other way???

Keith said...

I don't like subsidies. We're actually artificially keeping the price low, while Malaysians live under a false impression that the economy is still good and they can continue spending the way they used to.

Most people say, we are an oil exporting nation, and we use oil to subsidies oil. Well the oil in Malaysia belongs to ALL Malaysians (including our un-born children and grand children), and if we continue to use it at the rate we do now, our children will live in an oil-importing Malaysia. Therefore, we're actually borrowing from our children with a debt we could never pay back.

Inflation in todays economy is un-avoidable. We need to raise the price of petrol to a more realistic target, and supplement this with a minimum wage, financial assistance to specific income groups and increase the efficiency of our public transport system.

What's the point of being an oil-exporting nation if all that money is being used to subsidies our own oil.

Ismail Ibrahim said...

we should b greatful lot bro.

eruditesays said...

dear friend i've added you in my blog.kindly link me from your blog.

sexyjudge said...

Rocky, grateful for the words and promises uttered but the situation is still worrying. Flimsy, I'd say. Can't help the anxiety, dear. History says it all.

http://sexyjudge.blogspot.com

dong-dong said...

How do you explain the conflict between top Govt leaders?
Says Shahrir: Petrol prices to stay.

Says Najib: Govt to review petrol subsidy(today's NST)

Says the Star: petrol prices to stay till Sept.

Says Singapore ST: Govt to increase petrol prices on May 27.

As usually is the case, the last-mentioned source appears to be the most accurate. Wonder why?

temenggong said...

For how long can we subsidise? Till we become a net importer of oil in 2012. Yes we can postpone the inevitable.

Then, in 2012, in one fell swoop, the price of oil will rise to RM 5.50 per litre, as it is in Australia today, based on oil prices of $110 per barrel.

But oil prices are still rising, today at $136, and expected to be $200 by December 2008, and surely $250 by 2012.

Be prepared for oil prices then would be RM 13 per litre at the very least!!

Subsidy, is a house of cards, the 'secret formula' for economic collapse!

temenggong

caravanserai said...

No petrol hike
Don’t hold your breath
This is the trick
Stopping the internal turmoil
In the ruling elite

I rather the petrol subsidy is let go
Let the forces determine the price
The people bite the bullet now
In the years ahead knowing how to budget

WE can’t believe
The subsidy will last forever
Petronas surely harvesting hundred of billions
Just for the moment before the fall

Right now the rich and poor
Pay the same price for petrol
Across the board no class differentiation
In the end who losses the most?

Nay the government of BN
The leaders try to hive off problems
Squabbling amongst its members
They can’t afford to rock the boat
Until such time when the situation improves

In September BN will review it
For now the cabinet is buying time
Knowing the petrol hike has to come
They can’t close one eye, can they?

Goostee said...

Ye..le.., makin mengelirukan ! Lebih-lebih lagi kpd kami bukan orang politik ni. Tapi saya lebih yakin harga minyak tidak dinaikkan kerana ia memang tidak perlu di naikkan. Keuntungan yang diperolehi oleh Petronas sebenarnya lebih dari cukup untuk menanggung keperluan asas rakyat jika keuntungan tersebut digunakan dengan berhemat. Ini terbukti dengan tak jadinya harga petrol dinaikkan selepas PRU 12 baru2 ini. Walhal, kenaikannya telah sengaja dihebah-hebahkan sebelumnya agar kenaikan yg dirancang tidak mengejutkan apabila dilaksanakan. Tsunami PRU 12 telah memaksa perancangan tersebut diketepikan dengan harapan ia tidak tambah menyemarakkan kemarahan rakyat. Sekali gus ia juga membuktikan kepada kita bahawa kita bernasib baik kejayaan Pakatan Rakyat dalam PRU 12 baru2 ini dapat menyelamatkan kita dari terus ditipu degan kononnya kenaikan harga minyak adalah sesuatu "yang tidak dapat dielakkan".

zealot said...

Bro,

i doubt it. statement of shahrir is only momentarily. najib was once said in the mainstream media, the price of rice wont go up. but it did. traders got the blame.

so, how sure are we that shahrir is not lying?

hjab said...

Disclaimer: I'm not sure whether this is true or not...
Read it somewhere that Petronas doesn't actually earn that much, that in the aftermath of 97 financial crisis and in desperation for funds, Gov actually sold our oil, in a long term agreement, fixed at the '97/98 oil price, quantity unknown.
Readers, insiders in oil industry who are well-versed on the mechanism on government oil trade maybe can shed some light on this.

Anonymous said...

If by 2012, crude perches at 250 or 350, nothing else matters much, free market, slave trading or black market ain't gonna solve anything. Might be the order of the day - or as they say in Parliament, Point of Order!

The "leakage and subsidy" thingy ain't just about oil; it's what the BN gomen is all about.

Scuse! Gotta take a leak, myself! ;)

-hAnon-

Da Real Deal said...

My freind, selling barrels of oil isn't like buying fish in the market. The question her is has Petronas sold their oil in advance or has it been prudent and are selling it on the current oil market.

You see, if they sold their barrels five years ahead three years ago when the market prices were below 90 bucks, they'll they'll still be earning below 90 bucki a barrel till 2010.

This means, instead of Petronas making more money from the rise in oil prices, the jewish barons are from the price difference. For all you know, they are the ones pushing the prices up using the market forces to their advantage to make profits from oil that's not even sucked out from the ground yet.

skilgannon1066 said...

Salaam, Pak Rocky

I am surprised at your views because of the simple fact that paying out RM50 billion annually for fuel subsidies is simply untenable.

What's more the economic illogic in maintaining price caps on food items?

For how long can the govt continue to maintain a budget deficit because of subsidies and price caps and not have it's credibility called into question?

The only things that should be subsidised are:

- education
- healthcare
- public transport infrastructure

Everything else should be based on free market pricing.

It is better to give direct targetted financial assistance to the poor and needy in the country instead of an out-of-control subsidy approach that benefits both the rich and the poor.

And Petronas should follow the example of Norway where the govt set up the Norwegian Govt Pension Fund - Global, a sovereign wealth fund that receives surpluses from the country's oil industry and invests the funds for the benefit of all Norwegians.

Of course, this means that Petronas will no longer be the cash cow for the Malaysian govt, to fund all sorts of projects according to the govt's whims and fancies.

Perhaps the Opposition could raise this in Parliament, instead of indulging in childish antics.

Da Real Deal said...

ding dong,

Singapore ST is usually accurate because they have a snitch under their payroll high up in Kuala Lumpur.

mythsmyseries said...

About the oil reserves, a very reliable friend informed me, that Malaysia has only 3 years worth of oil left.

So, by then .. how much will the petronas shares worth?? or how will it impact us then???

I wonder if there is anyone out there .. NGO or groups or individual .. would be willing to actually map out our nation's economy plan and test them against BN and PKR's plan .. I'm sure there are many geniouses out there .. it will be truly From the Rakyat For the Rakyat proposal ..

Anybody dares to take up the challenge ???

Anonymous said...

I am riled by the fact that Singapore has stopped ensuring that their cars have 3/4 tank full of petrol before entering JB. Singaporeans are filling their car tanks every day in JB. Why are we subsidising the citizens of a rich nation?
Cheesed off

siamangagap said...

jangan risau, harga minyak tidak akan naik. selagi harga minyak dunia naik selagi itu kerajaan pusat boleh beri subsidi kerana untung jualan minyaknya juga naik berganda. yang merisaukan ialah bila minyak habis. masa itu nasiblah sesiapa yang menjadi pemerintah dia akan dilaknati rakyat. resam manusia...

mohdpaizal said...

kalau kerajaan nak tak balik subsidi minyak boleh tapi beri elaun khas kepada rakyat yang berpendapatan rendah dan diskaun kat kepada peniaga dan nelayan yang dilakukan sekarang untuk membeli minyak, dengan itu ia dapat menggurangkan beban rakyat dan perbaikkan pengakutan awam, dengan ini rakyat boleh memilih untuk berjimat, dimana nak berbelanja kepada petrol atau makanan. kerajaan harus membelanjakan subsidi itu untuk mengurangkan kenaikkan harga barang keperluan, jangan pulak seperti sekarang, contoh harga beras yang dikawal langsung tak ada dalam pasaran yang tak dikawal berlambak.

zeqzeq said...

..salam BRO.
agaknya siapa yang nak buka KES TUN saleh semula?report ke..maaf maaf juga..tapi ..kena la HUKUM yg salahkuasa

daniel said...

I kind of agree with siamangagap. Rice crisis, want to blame government (knowing well it is a global crisis) and what next, our oil run out, they're gonna blame the government for not having enough reserves or not preparing? :P

People can be a little bit unfair sometimes. Well, no government can please EVERYONE right?

But for the time being, I do agree Bru, this is a reason to be pleased with the government. Hopefully they'd have more decisions more on the people's side this time around.

skilgannon1066 said...

Lee Kuan Yew said that subsidies are the wrong way to go. It is better for a country to have a strong currency and people with well-paying jobs who can afford to pay "market rates" for goods and services, instead of being artificially cocooned by a web of subsidies and price caps.

Muammar Gaddafi has said that the Libyan govt is now realising that heavy subsidies were unsustainable in the long run and that direct cash transfers are a better way of sharing wealth.

When LKY and Gaddafi think alike, Pak Lah and his Cabinet had better sit up and take notice.

amoker said...

Hemm.. does he mean that there is possiblity that petrol price will increase during puase/ Raya times? Perhaps Shahril can just extend it until after UMNO GE. That way, it will be a populist move for his party.

suka tengok wayang said...

"My freind, selling barrels of oil isn't like buying fish in the market. The question her is has Petronas sold their oil in advance or has it been prudent and are selling it on the current oil market.

You see, if they sold their barrels five years ahead three years ago when the market prices were below 90 bucks, they'll they'll still be earning below 90 bucki a barrel till 2010.

This means, instead of Petronas making more money from the rise in oil prices, the jewish barons are from the price difference. For all you know, they are the ones pushing the prices up using the market forces to their advantage to make profits from oil that's not even sucked out from the ground yet."


Bro real deal,

That's why Allah prohibit usury (RIBA) deal in Islamic economy.. Usury prohibition--> Al-Baqarah: 275-279..
Selling future commodity is a form of RIBA.. the effect? now you know.

See what happens when somebody in the Govt think he is smarter than God?

No subsidies, No price control, No riba' & No monopolies..all real deal & no speculation/virtual trade.. does not disturb the natural ecosystem of the economy - its Islamic Economic System.
all govern by faith...justice for all (traders & consumers)

Da Real Deal said...

Suka tengok wayang,

I am in full agreement. It is all provided for in the Quran. I was just explaining the circumstances that might be faced by Petronas due to some wise guys' bright idea.