A new oil policy - reform Petronas
by Dr. Chen Man Hin
The latest jump in pump pricing by 42% has caused an upheaval in the economy and much unhappiness among motorists and the people. businesses are stalling, and there is undertainty about the future. the sudden severe rise has caused a social and economic earthquake.
The shocking increase was unnecesary, and here are the reasons why it was a bad mistake.
MARKED DISPARITY OF PUMP PRICES BETWEEN MALAYSIA AND OTHER OIL PRODUCING COUNTRIES.
Malaysia’s pump price should be equilvalent to pump prices in other oil producing countries, as for example:-
Saudi Arabia RM 0.38 per litre
UAE 1.19 / litre
Egypt 1.03 / litre
Bahrain 0.87
Qatar 0.68
Kuwait 0.67
Iran 0.35
Nigeria 0.32
Turkmenistan 0.25
Venezuela 0.16/litre
MALAYSIA 2.70/LITRE
COST OF PRODUCTION PER BARREL OF OIL
Statistics indicate that the production cost per barrel of oil for the above countries vary around US$ 4 per barrel. The world average is US$ 7 per barrel.
A barrel contains 44 gallons or 176 litres oil, which works out at US 2.27 cents per litre or 2.27 x 3.3 = 7.49 sen per litre.
As the production cost per litre is only 7.49 sen, it is beyond comprehension to see how the pump price could be raised astronomically to RM2.70 per litre.
There is no justification for pump price of petrol to be RM2.70 which is way above the price set in other oil producing countries in Middle East, Africa or South America.
This is an example of bad governance. Our natural resources should be used to help people and not to profit recklessly at their expense. Prime Minister Abdullah has a lot of explaining to do.
Petronas should be more transparent and be people frieidly.
Petronas is making huge sums of money. Tun Mahathir claims that Petronas made a profit of well over RM70 billion last year, and should therefore be able to keep down fuel prices instead of unreasonable price increases.
OIL PRODUCTION. Petronas produces 650,000 barrels of oil each day, out of which 250,000 barrels were for export and the balance of 450,000 barrels for domestic consumption.
At US$130 per barrel, less US$10 for production cost, profit per barrel would be US$120.
Estimated profit per year would be 250,000 x 120 x 365 x 3.3= RMR 36.1 billion
If we include profits from natural gas, investments in other countries, Petronas’s earnings would reach record levels.
PETRONAS WEALTH TO REDUCE SUFFERING OF THE PEOPLE INSTEAD OF RAISING OIL PRICES
The evidence is definitely against any increase of pump prices for Malaysians. Pump prices should return to a reasonable level - the same as in other oil producing countries.
Instead of spending money on subsidies for fuel, the funds should be used for the benefit of the people and marginalised poor with better schools, more hospitals for the sick and housing for the homeless.
PETRONAS TO REFORM
Since its inauguration in Parliament in mid seventies, its operations have been shrouded in secrecy. It is time for Petronas to be answerable to Parliament, to open its accounts to the people and to institute new policies for a healthy and vibrant industry.
June 16th, 2008 at 09: 25.38
….with Petronas’ profits; palm oil profits; and profits from rubber, tin, agriculture produce, aquaculture produce, electronic and hardware exports etc., for the past 5 decades, we can all agree on one thing - our country would be wealthier than Venezuela who has little resources except for oil. The petrol in Venezuela is RM0.16 per litre.
http://www.malaysia-today.net/2008/content/view/8750/84/
June 16th, 2008 at 09: 34.28
Doctor,
Fact 1: Petronas as an international company has done exceptionally well. About 60% of its revenue is from overseas operations. Not all state-owned oil-company are doing well. Coming immediately to mind is the Indonesian counterpart.
Fact 2: Among GLCs, Petronas seemed to be above others, probably due to the leadership of Hassan Merican, a no-nonsense person. Stories around told of his reluctance even to entertain Dr Mahathir’s request even in the latter’s days as PM.
Fact 3: Petronas has billions invested all over the world. It has subsidiaries and joint-ventures. Other than Petronas very senior executives, nobody, including the PM, really knows where these funds are invested.
So we have questions here:
1. What and where has Petronas done wrong? Is it not revealing its profits?
2. If Petronas makes the reputed profits, is it the right thing to regard that as the country’s revenue and utilise it to subsidise petrol prices?
Dr Chen, I agree Abdullah’s scheme of increasing petrol prices was ill-conceived and ill-advised. I still think he could have increased it gradually, probably in three stages. Secondly I think he could do more in curbing over-spending and wastage instead of ad-hoc announcements (eg 10% ministers’ allowance cut – an insult) trying to diffuse public anger.
But tying public dissatisfactions arising from PM’s flip-flop decisions with Petronas, I think, is not fair. Accountability calls into Petronas and its investment is necessary, of course. It stops the abuse of its profits for the benefit of a few (eg BBMB’s rescue), but this is totally a different issue altogether.
At same time, to connect Petronas with the flip-flop PM is also unnecessary. Other than Petronas has made billions in profits, I think the PM knows nothing else about the company. PM’s decision, as I maintained, had been ill-conceived and I doubt his ability to see the economic implications ie damage, of his decision.
Thank you and good day Dr Chen. (I am pleased you are still mentally active to participate in the debates of the day.)
June 16th, 2008 at 09: 34.59
Wah! Even the SIL has called on Petronas to make public the details of its profits, including its sources of revenue.
June 16th, 2008 at 09: 39.04
It’s just a strategic tactic by SIL in the tussle for power. Once he has become PM, he’ll just change Petronas’ name to Petro Anak Menantu Sdn Bhd with himself as both CEO and CFO.
June 16th, 2008 at 09: 51.21
Let’s be honest with ourselves! Petronas reports directly to the PM. Who here thinks that the PM or Petronas is going to open its Audited Books for the Public to see?
It’s just not going to happen (not unless there is a change in the Federal Govt. anyway!).
June 16th, 2008 at 10: 05.39
With due respect I think Dr.Chen is barking up the wrong tree. Petronas is just a corporate enity answerable directly to the PM. As a Govt agency entrusted with the responsibility of mining our natural resource, in this case petroleum, its performance must be viewed as a CPO extraction operation just like Shell, Exxon or Chevron. To judge whether Petronas’ operation is up to the mark is to peg the various measures of performance like recovery rate, cost of extraction, investment cost per barrel of reserves. production cost per barrel, gross profit margin, investment recovery rate etc..etc. with that of other major oil companies.
Without the benefit of privy to Petronas accounts, we will not be far off the mark to conclude that Petronas’ operation is as good and as efficient as that of the major oil companies.
Politicians have been “indoctrinating” the Rakyat with the erroneous view that Petronas is the culprit for being unwilling to carry on with the “subsidy program” on petrol and diesel. The “culprit” is the master who control the purse strings of Petronas i.e. the PM and indirectly UMNO.
If I may suggest YB Lim request through Parliament what policy does Petronas adopt in utilizing its financial resources.
In my posting on another website, I have proposed this “model” for prudent utilization of Petronas’ financial resources.
Based on Petronas’ reported payment of corporate tax to the Malaysian Govt of RM330 billion cumulatively, Petronas should have total retained earnings of RM770 billion since its inception.
A prudent model for the utilization of this these RM770 billion, if adopted from day 1 of Petronas’ operation would be:
(1) Setting up a sinking fund of 35% or RM270 billion for re-investment in the petroleum industry: exploration, extraction, maintenance, research, development of downstream activities etc.
(2) Allocating 30% or RM231 billion to a “consumption fund” to benefit the Rakyat directly. Subsidy programs would come under this fund. Moreover, this “consumption fund” could be deployed as an “anti-inflation” tool to thwart “energy-related” inflation since energy is so deeply embedded in every sector of the economy. Any increase in the cost of energy would certainly lead to a chain reaction in the inflation-fission.
(3) Allocating 30% or RM231 billion to fund development projects under the various 5-Year Malaysia Plan.
(4) A Contingency fund of 5% or RM38 billion to deal with unforeseen natural disasters or calamities which result in loss of lives and destruction of properties. This fund is to facilitate the rebuilding of our resources.
I hope to see YB Lim unleash his full energy, intellectual and physical, in Parliament to bring some sense and Rakyat-empathy
feeling amongst the MPs both PR and BN.
June 16th, 2008 at 10: 17.48
Being an ‘inefficient’ oil producer, Petronas may claim that the company is experiencing down time for more than 100 days in a year. Hence, the calculation of annual profit might be ‘incorrect’………….hahaha
Petrol subsidy is akin to NEP, breeding inefficiency, below-par performance, lacklustre manpower, 3rd world mentality, laziness, corruption, abuse of power etc………I personally support government’s move to cut oil subsidy but I want to demand explanation on the past usage of Petronas’ profits!
June 16th, 2008 at 10: 18.55
Oil should be back to the states.
The federal should stop robbing the poor states.
The rich states should stop robbing the poor states.
If you want to rob, go and rob the Middle East
June 16th, 2008 at 10: 24.20
Shouldn’t this statement be
“As the production cost per litre is only 7.49[B]sen[/B] (not RM 7.49), it is beyond comprehension to see how the pump price could be raised astronomically to RM2.70 per litre.”??
[You are sharp and right. Error in posting up, no fault of Dr. Chen. - Admin]
June 16th, 2008 at 10: 24.55
Bagi saya tidak perlu PETRONAS diletakkan di bawah Perdana Menteri atau Parlimen.
Ini semua hanya mempolitikkan PETRONAS yang sepatutnya menjadi periuk nasi kita semua. dan akan memusnahkannya seperti yang berlaku pada syarikat minyak negara lain.
Saya lebih suka PETRONAS diletakkan di Bawah Yang Dipertuan Agong dan beroperasi sebagai Syarikat minyak bukan sebagai 1 GLC.
June 16th, 2008 at 10: 30.12
Malaysia (oil-exporting country): petrol price - RM2.70
China (oil-importing country): petrol price - RM2.43
Indonesia (oil-importing country): petrol price - RM2.14
PL should explain why as an oil-exporting country, Malaysia’s petrol price is higher than that of oil-importing countries and why the country is NOT benefited from its natural oil resources.
I believe revenues from oil have been mis-used (e.g. posh BN campaign for the 12th GE) and the government is desperate to shore up its empty coffers by inordinately raising fuel prices.
PL should publish Petronas audited books to prove his innocence.
June 16th, 2008 at 10: 40.06
Dr Chen:
You are senile if you think that a bunch of thieves will voluntarily give up their right to the piggy bank.
The correct phrase to describe this thread is: “Pissing into the wind.”
June 16th, 2008 at 10: 51.34
I am still cannot understand why petronas book is not an open case? Another OSA?
Any privatization of our natural resource like, Gas, Oil, Water, Timber, Mineral is based set with a independent commission to oversee it. And the best practice is OPEN BOOK.
I belief Syabas is another bad case! Their Meter Disconnection Engineer is better call “Gangster or Thug”
http://shiokguy.blogspot.com/2008/06/thug-from-syabas.html
So take back all privatization and put under public view.
Shiok Guy
June 16th, 2008 at 10: 53.17
Under BN rule, you shall never expect any changes in reforming Petronas. Do you think those directors in Petronas will allow you people to rob their gold mine?
However, and Pakatan takes over govt, they will force Petronas to give up its rights.
June 16th, 2008 at 10: 53.56
PriceWaterhouse once audited Petronas as the ‘world’s most well-managed petroleum company’.
That was the same year when I had some dealings with them and noticed some squandering of money; and they still do in another area: the petrol stations. Service at Petronas stations is doubtless the worst that one can get from Malaysian petrol stations.
So I’d suggest to take the audit with a grain of salt.
Still, they are well-managed; and produce a lot of revenue. The perversion comes with the fact, that the petrol for our cars is not easily refined from the Petronas crude oil; and therefore is imported. That is, world market prices are to be paid for engine fuel.
The ’sweet’ crude of Petronas is sold for good money to overseas. We can’t blame Petronas for the income, and neither can we blame them for not compensating the high prices for oil imports suitable for engine fuels; this is not Petronas’ subsidiary. Their income is partially deviated to the government, as I understand through the PM directly. And it is the government that uses it at its discretion. Which was Putrajaya, twin towers, and most of all handouts to pacify the public, including the social obligations under the NEP.
If memory serves well, it was the late MGG Pillai who estimated the transfer of funds from Petronas to the government in the range of 800 billion.
As much as any company is supposed to be audited, lay open their accounts and books, I am afraid the problem is not so much ‘creative accounting’ on the side of Petronas, but the drain through the need to finance white elephants, create towering people, bolstering accounts of MAS, LRT and other GLCs, subsidise IPPs, and so forth. As long as some of our brothers and sisters don’t see the need to stand on their own two feet, Petronas is not the right place to look for solutions.
1. Petrol prices need to go up; if only to start prudent use.
2. Subsidising petrol or some costly ’social engineering’ needs to go away.
None of the latter is tackled by fleecing Petronas. Once 1. and 2. as above are solved, we need to start looking into the accounts of Petronas, in order to make sure that the huge revenue is invested to the better of the rakyat.
June 16th, 2008 at 10: 54.36
it is not doubt that as exporter of petrol, we are suffer from the oil hike ..in sense, since the current market for oil keep raising…we should enjoy the the fuel hike instead of suffering…why? BN government prove to be a worst economist , they bail out crony company which failed in their operation and practise corruption in everywhere they can…if give Pak Lah another term, he will fill his own pocket and left rakyat to suffer that what i predict..I call on Najib to be the first one to break the tradisional, help the RAKYAT challege Pak Lah to step down…Najib MUST differential the tradisional of UMNO style and saving the RAKYAT…if he himself cannot clearing understand …then Malaysia CERTAIN have no future… Gold Bless US ALL…
June 16th, 2008 at 11: 12.07
pulau_sibu Says:
Oil should be back to the states.
The federal should stop robbing the poor states.
The rich states should stop robbing the poor states.
If you want to rob, go and rob the Middle East
well, unless we declare independence else the robbing will go on and on…….
June 16th, 2008 at 11: 14.16
Petronas as a leverage in dealing with AAB is the most efficient tool available. There is a need to go to the root cause of the fuel price hike, in order to not only optimize an economic approach but also to explain the truth to Malaysian at large.
As I mentioned before, the fulcrum need to be shifted in such a way for Petronas to come around the public side.
June 16th, 2008 at 11: 19.34
The correct phrase to describe this thread is: “Pissing into the wind.” - Godfather
Why pissing into the wind?
June 16th, 2008 at 11: 22.21
OSA binds Petronas. Who’s the mastermind behind OSA? how long they plan to continue?
June 16th, 2008 at 11: 26.38
Maybe the steep oil price was created so that no one can blame the present government to reveal PETRONAS’ accounts?
Even Khairy is asking the government to show us the money.
Petronas can be considered like the rich stakes that a gambler (Malaysia) won. It is similar to some people becoming multi-millionaires overnight.
Within a few years, they will lose all their money and also their friends. Malaysia too seems to have squandered all the oil wealth with wasteful projects. Please visit my blog to read recent entries.
June 16th, 2008 at 11: 38.15
[...] Lim Kit Siang also join the crowd ..here… [...]
June 16th, 2008 at 11: 59.00
“Malaysia too seems to have squandered all the oil wealth with wasteful projects.”
When is the time their (BN goons) buffett meal cease? When DSAI wanted to invite the IMF to interfere, Tun Dr M prevented him to do so by putting him under ISA for more than 10 yrs for no reason since that power already expired now is another wave of effort to amend what is wrong.
So ppl. be prepared for new boss this coming September.
June 16th, 2008 at 12: 23.01
Dear Dr Chen,
I think the most important reason why we should put Petronas under Parliament is because Petronas / Oil is central to our life.
Everything is dependant on Petronas/Oil. Transport, food, electricity, businesses, etc, etc.
Since Petronas / Oil us central to the rakyat’s lives, to the rakyat’s well being, the right place for Petronas’s control should be the Parliament, which is the Rakyat’s voice.
June 16th, 2008 at 12: 48.09
Found this interesting story from comments posted on Malaysia Today and would like to share with all of you.
The story about “subsidy”…
A man called Maha owns a farm which can produce 10 apples every day.
He has 5 workers to operate the farm.
Each of them eats 1 apple daily and it is enough to keep them operating the farm normally.
The remaining 4 apples, the landlord sells them at RM10 each and he earns RM40.
He uses the RM25 to improve the farm operation and facilities.
He gives RM2.00 to each of his workers and he keeps the remaining RM5.00 as profit.
Day by day, the farm is well developed and all of the 5 workers are happy with the money they can save.
When Maha passed away and there is a new landlord, Abdul comes to continue the farm operation.
He says to the workers:” We need to improve the farm quality and redefine our way of thinking.
From now on all of you only need to pay RM1.00 for each apple you eat.
It is very cheap as the price is RM10 each outside the farm.”
The workers have no choice but to pay RM1.00 for the apple they eat daily.
Their earning decrease from RM2.00 to RM1.00 per person.
As usual, Abdul sells the 4 apples and he gets RM40.
He uses RM25 for farm improvement and pays RM10 to his 5 workers.
He gets RM5.00 as profit. On top of that, he gets another RM5.00 from the apples that he sells to his workers.
In total, he gets RM10 as profit every day.
Soon, the apple price increases to RM20 each.
The new landlord gets a higher profit as he gets RM80 for the 4 apples he sells daily.
Then, he decides to give the farming improvement contract to one of his close friend, Samy.
Samy says:”Apple cost naik, improvement cost also misti naik.”
So, the farm improvement cost increases from RM25 to RM50.
In actual, the improvement only cost RM30.
The remaining RM20, Abdul and Samy share evenly among themselves.
Let’s calculate how much Abdul gets daily:
RM10 (from farm improvement cost)
RM20 (Net profit by selling 4 apples: [Gross profit, RM80] - [Improvement cost, RM50] - [Wages RM10] = RM20)
RM5 (from selling apples to his workers)
In total, Abdul gets RM35 daily compare to RM10 initially when he takes over the farm from Maha.
His profit increases RM25 and the workers are still getting RM1.00 daily per person.
The greedy Abdul does not want to stop there.
One day, he says to his fellow workers:” You see ah, the current market price for one apple is RM20 and you are only paying RM1.
See how lucky you are! I have to SUBSIDY RM19.00 for each of the apple you buy and total I need to SUBSIDY RM95.00.
This will greatly burden the farm and we might get bankrupt if we continue like this.
In order to avoid bankruptcy, I need to increase the apple price that you buy from RM1.00 to RM1.50 and I will bear the remaining RM18.50 per apple as my subsidy to you all. ”
So, greedy Abdul adds RM2.50 to his current profit and the number becomes RM37.50.
After you have read the story, I am sure you have already understood the meaning of “SUBSIDY” given by the government.
The RM95 subsidy never existed in the first place and so was the RM52 billion fuel subsidy generously “given” by the government
Cutting fuel subsidy is actually just a reason to steal money from your pocket.
Are you gonna stand there and let them rob you?
June 16th, 2008 at 12: 53.32
It is unthinkable how a company with billions of ringgit in turnover should be kept secret.
It will be interesting to know how many billions were channeled to ‘wasteful’ ventures on the illegal directives/orders of the PM - past and present.
e.g 1. Bail out of Mahathir’s sons companies, Bank Bumiputra X3, construction of the Twin Tower, Putrajaya and Cyberjaya, F1 Circuit, losses in the financial/tin markets, funds to prop up KLCI, or purchase of portfolios from loss making companies beloing to UMNO cronies.
It will be interesting to know how many millions were spent on ‘educational wastage’ ( students sent to overseas universities who failed or never retruned).
The number of UMNO leaders’ children who were given scholarships.
Finally, the number of contracts given out to UMNO cronies.
June 16th, 2008 at 12: 54.34
People should stop harping on the issue of fuel increase and instead should be focusing on the right things ie nation building and how to get everyone to unite behind the BN led government at this difficult time. What the government need is the understanding and support from people so that other plans can be put in place. We should feel lucky as Petronas is able to make profit every year in the midst of stiff competition. What if Petronas doesn’t? If this is the case, then there is no question about subsidy or no subsidy. Again, we should feel proud about Petronas as it is being managed by 99% of bumiputra and is a Fortune 500 company. Who says Malay cannot run a big corporation? Without Petronas, we will not be able to achieve a lot of things in order to be world class ie bring F1 to Malaysia, having the world’s tallest twin buildings, having one of the best airport in the world and the high quality living environment in KL etc etc. We should fee lucky that Malaysia does not have any natural disasters. We must be grateful for what Allah has given us.
June 16th, 2008 at 13: 02.57
Mr Smith, you guys keep accusing that the UMNO members are conies. Do you have any basis? Please show us the proof as this already amounted to defamation to the UMNO. Without F1, Putrajaya, Cyberjaya and all the world class insfrastruture, how can Malaysia bring itself to where it is today? Do you know there are significantly more people know about this country than before because of the twin towers and F1? Even Singapore is trying to get F1 in. How can Malaysia compete with the world if without all these? Just, there may be some loss making projects but those are just a small portion. The profit of Petronas is far enough to cover these losses and we do not see anything alarming at this stage.
June 16th, 2008 at 13: 08.27
The production costs quoted could be misleading. Cost of capital expenditures, development cost etc may not be included in the operation costs, and different oil reserve occurences warrant different cost structures, added to that the costs also take into consideration taxes and fiscal structures in different oil producing countries in the world.
Petronas should open up its book for the people to see. Afterall it is extracting the god given natural resources of the country. Benefits from such exploitations should be enjoy by the rakyat and not a few privileged ones in power. That is sinful and is abuse to the fullest.
Whatever it is, it is a fact that the global oil price has escalated and every body knows and is aware. The price of fuel has to increase in tandem.
In Malaysian case, there is no difference. The price has to go up and not down. It is hard to argue rationally that whether at RM2.70 per litre of petrol; it is too high or is just reasonable. But the computation of the price was done by the relevant authority and by experts which indicated that the actual price was RM3.00 per litre based on the crude oil price at the time of computation.
If the computation is done correctly, then RM2.70 per litre of petrol is acceptable and reasonale, because 30 sen is still being subsidized as the price based on crude oil price at that instance.
Since then, the price of crude has gone up further, consumers are in fact now enjoying further subsidies on the pump price.
People like to oppose, but be reminded that they should not oppose for the sake of opposing, and in this instance, we are talking of conserving the natural resources of the country, the crude oil reserve.
We have to be sensitive and responsible to ourselves and to the future generations by conserving the natural resources, and we bear the price of the commodity and use it sparingly.
Cheap price only lead to wastage and inefficient usage of the commodity.
Even after almost 2 weeks of the petrol price increase, daily number of cars travelling along roads in the city seems to be not letting off, instead if you observe, the number seems to be on the rise with vengence, making congestion worse than before the price rise!!
Most, if all the cars, carry one person, and that is the drivers only.
What does that portray? Either the drivers are immune to the price rise, or, they do not give a damn to the need to change usage of petrol and diesel; and change their lifestyle accordingly.
These people prefer to complain, protest and demonstrate in public, while in person, they carry on the same way of squandering the precious commodity, plainly refused to innovate their way to live. So what is all the fuss?
People just do not learn and face up to the global reality.
June 16th, 2008 at 13: 09.29
For a bum who failed Intro Econs in uni, this guy Abdul sure beats Maha the doctor in cheating his workers.
Moral of the story: You don’t have to be a doc to get rich
June 16th, 2008 at 13: 16.19
Keep comparing our country with others will not make you feel miserable. Singapore is small and it is easy to manage. Don’t forget, the reason why Singapore can have such achievement is because they abandon their own Malay, Indian and Chinese culture and switch to western culture. The Singapore government made these sacrifices in order to trade with materialism and prosperity in disguise. China, Japan and Korea they all have long historical background and they are lucky because other developed countries have helped them a lot along the way. Malaysia still has its own culture and it maintain a strong hold on the National Language - Bahasa and everybody is able to speak the national language. After 50 years of independence, there are also more graduates and enterpreneurs. To compare with other countries is too harsh on ourselves. Malaysia has relatively shorter historical background and she has to depend on her own. Malaysia needs more time to evolve comparing to these countries and we should not be too hasty in the process.
June 16th, 2008 at 13: 45.50
I would like to politely ask Mr. Kasim Amat to shut the hell up! What the hell do you know??? what stiff competition are you refering to? the increasing oil price in an ever increasing demand market? do you even understand the basis of economy? i really hope that you pray to Allah everyday and hope that he bless you with a brain to think
petronas is managed by 99% malays because others arent allowed in. are you so stupid that you dont realised this or are you so naive? Allah have given a lot to Malaysians: oil, palm oil, tin, rubber, agriculture etc. but as malaysians do we actually benefit direct from what is given to us? Most of the monies are either squandered to offshore somewhere or to build some person in power’s home.
Where indeed is Malaysia in the world right now?? we are nothing. all those things you listed in your reply were not achieved/planned or done by the present government but by the previous administration of mahathair. the present administration has done nothing but make him, his cronies and his son-in-law so rich that other less well to do families struggles on.
If you want prove to the government’s wrong doing then abolish ISA and give freedom of press back to the public. abolish sedition if you dare give freedom of speech back to the public then maybe you have proven to be a government worthy of its people. Why should we as citizens prove the government’s wrong doing? we elect them so it is up to them to prove that they are working for us and not commiting any wrong doings and certainly not raping us.
for all others malaysia is a net exporter of oil - in plain english that means we make money from selling oil so stop basing your arguements on sudsidy nonsense. also our oil is one of the easiest to distill into componenets similar to the oil in iraq *hint*hint*war in iraq?*. high grade sweet crude means we need to put in less resources to get it into its component. unlike countries like china where the crude oil is of high viscosity so it is cheaper for them to just import.
promises were made by our current PM that upon re-elected he will make sure that petrol/diesel prices would not go up so now why has it gone up? it just proves that he is either a liar or just incompetent making empty promises.
so shut the hell up use your god given brains before you ever open that god given mouth irresponsibly.
June 16th, 2008 at 13: 47.05
the only way to know what is really going on is to vote in a new govt. then, only the new govt can do a forensics on the books on Petronas and reveal for all to see.
not only Petronas, but all the leakages thats going on. Look at NS program. Suddenly, it can save RM60 million and return to the Defence Ministry. This is just the tip of the iceberg for this deathly program which had produced 16 casualties and counting.
June 16th, 2008 at 13: 50.45
“Malaysia needs more time to evolve comparing to these countries and we should not be too hasty in the process.”
Dollar has been give enough mandate to lead not only the Malay but the Malaysian, to make everyone living in Malaysia a first class citizen, do u dare to claim urself as a 1st class citizen of Malaysia?
“Japan and Korea they all have long historical background and they are lucky because other developed countries have helped them a lot along the way.”
Japan & Korea are lucky because their govt. encourage population growth. They are many ladies entrepreneur in Japan mainly work in red light district, some become adult visual entertainer, and mostly to cater for local market. Japan is a closed economy, even other Multi national have to re intrepret their product and set of procedure when setting up business in Japan. You guys don’t have to compare far, jus compare against Thailand, Malaysia should be ashame, look at the supermarket shelf in Thailand, they’ve more products and variation compare to Malaysia.
Malaysia supermarket shelf has less choice reason becos, each product introduce to local market must give some form of commission to the cronies. They don’t encourage local manufacturer, becos these license are normally misused or abuse to get huge loan at lower interest. The cronies will normally use up these funds to do other thing like investing in stocks and shares, whereas borrowing the money for setting up manufacturer are jus a trick to get govt. funding at low interest.
U will see alot of BN goons driving a Mercedes Benz, BMW, porsche Cayman, Lexus, and many more luxury vehicles, becos they borrow at 0 or no interest, and invest the funds in other sector.
All these cheaters, the suffering only bear by Malaysian.
Like they continue to give subsidize diesel to fisherman who upgrade their vessel with big diesel tank so taht they can sell it to neighbor country. They no longer catch fish and improvde productivity for Malaysian, our fish become expensive becos the supply has declined, most fisherman become dieselman.
June 16th, 2008 at 13: 57.57
Japan is different, their fishing vessel normally go all over the world to collect fish rich in nutrients, normally it takes a year or two to get back all their catch to support the vast population of Japan.
Our sampan fisherman in Malaysia don’t practice that even after more than 50 years, what progress M’sian fisherman made, the only progress i can see, is they’ve modified their tank to fill in more diesel to sell. They have 1 or 2 mercedes benz parked in their kampong house near the sea side. Why brave the sea when u can enjoy life by hiring Indonesian to run the diesel fishing vessel to continue abuse the diesel subsidize program initiated by Dollar government. The boss owned 10 or 20 modified fishing vessels to sell off all these diesel to neighbor countries while he enjoying playing golf with all the cabinet menteri and cronies. Looking for any tips to tap into govt. soft loan.
June 16th, 2008 at 14: 02.53
How can our country resources efficiently distributed to the poor & middle income earner? when most of the dirty job to siphon the wealth distribution are stop by govt. cronies, before it actually reach the public? Worst of all, it is helped by Indon or Bangla worker which is pretty cheap for cronies to earn more.
Malaysian benefit nothing from govt. subsidize diesel program. Only the cronies benefit, and these cronies are living like little napolean in their mansion all around the world.
When dollar said, “we can’t satisfied everyone!” is he referring to the little napolean (cronies) or the Malaysian in general.
June 16th, 2008 at 14: 06.48
“RM60 million and return to the Defence Ministry. This is just the tip of the iceberg for this deathly program which had produced 16 casualties and counting.”
How much is a single Malaysian life cost dying in NS program? RM 3.75 million? Our life is pretty cheapskate.
Dollar, life are priceless yet you’ve turn blind when been confronted with report of NS death.
Dollar, cost of living is getting high you’ve ask us to “Ubah Gaya” why not “Ubah Kerajaan”
June 16th, 2008 at 14: 19.39
someone narrow-minded here obviously feel complacent with those so called ‘achievements’ and ‘progress’ in msia.
given the abundant natural and human resources tis land is blessed with, she should be 10 times better than spore or other countries today if not run by a bunch of garbage from BN government especially those in UMNO.
“China, Japan and Korea they all have long historical background and they are lucky because other developed countries have helped them a lot along the way.”
i have never heard of something so stupid in years. the person who made tis comment sounds like a retard.
June 16th, 2008 at 14: 27.35
To BN Kassim Amat,
“Mr Smith, you guys keep accusing that the UMNO members are conies. Do you have any basis?”
Very simple! How much you get from UMNO government in your entire life? During the election those who help out setting up booth for BN are been paid RM 200, and whose money is it for putting Dollar picture in big billboards? Whose money is it to print letter to seek voters vote for BN signed by Dollar to every household.
“Please show us the proof as this already amounted to defamation to the UMNO.”
The proof is in OSA, it is because under OSA nobody can question them. The UMNO are abusing OSA and ISA.
“Without F1, Putrajaya, Cyberjaya and all the world class insfrastruture, how can Malaysia bring itself to where it is today?”
You don’t have to wear gold to receive acknowledgement if you’ve a genuine golden heart.
Remember Sharizat during his election campaign, she invited Siti Nurhalize, Tony Fernandes, and many more famous celebrity to help pull the crowds. But the general public don’t need them, because they all knew Nur Izzat has the golden heart.
F1, Putrajaya, and cyberjaya is a wants but not a needs, we should tackle what we needs not wants. Singapore has all rights to build F1 as they’ve solved all the needs, now the extra income is to chase their wants. It doest not take a genius to figure that out.
“Do you know there are significantly more people know about this country than before because of the twin towers and F1? Even Singapore is trying to get F1 in. How can Malaysia compete with the world if without all these?”
There will be a day, when everyone’s dare and proud to announce that they are the first class citizen living in Malaysia.
“Just, there may be some loss making projects but those are just a small portion. The profit of Petronas is far enough to cover these losses and we do not see anything alarming at this stage.”
Reducing the subsidies will bring in chain effect to the Malaysia economy in general boasting inflation level to more than 5%. Obviously, you are reducing poor & middle income earner savings for future generation to come. A scenario of a family with 1 kid now have to carry on the burden of 2 kids, while those with 2 kids will have to burden the cost of raising 4 kids.
June 16th, 2008 at 14: 36.47
For the last 30 years, Petronas has been the cash cow (or cash generating machine, or a cash printing machine equivalent) for the UMNO government. the raykat did not reaalyget the full benefits from its oil money (other than the trigger down giant projects). There is a lot, I mean I lot, of corruptions inside Petronas.
In the early days, Petronas use the government money (that is the rakyat money) as a backing to support the explorations. Even today, the very top engineering management are mostly expatriates. They are paid at least RM 65, 000 a month. No, you are not reading it wrong, Ringgit sixty five thousand a month. The word you should re-read is “at least”.
The so call management is taking the advices from these expatriates. They are from the UK, Australia, Iran, Nigeria, USA, (in that order). The locally trained petroleum engineering graduates who may have a top position as managers but their skills are green. they are inept and not qualify for the job. They are there because of their skin colour.
My estimate of the employees who are of a certain skin colour in Petronas is 90%. Compare this to Shell oil company or Esso. They are also operating as a malaysian company but they only hire employees based on merit (with the required certain percentage of a certain race).
Exactly, Petronas is not as effecient as outsider think. Once oil price drop Petronas and malaysia is going to be in deep trouble.
June 16th, 2008 at 14: 37.48
“We even accorded them rights unlike other countries…” Well, mamak, you mean to tell us that negroes, hispanics, asians and other immigrant races to the US are not accorded citizenship rights? Then how can Obama bin Hussein be allowed to contest in the presidential elections?
http://www.nst.com.my/Current_News/NST/Monday/Frontpage/2268823/Article/index_html
June 16th, 2008 at 14: 42.25
It is not just Petronas, but all the govt agencies (GLCs) need to be reformed to be transparent and to channel all the profits back to the country coffers instead of cronies in order to benefit the Rakyat!!! All loopholes should be plugged and govt should set a target on how and when to make all Malaysian to be on par with other first world countries if not better. The govt must be sincere and be willing to carry out all these in order to succeed. All things will fail if the govt is just paying a lip service while continue to enrich themselves and cronies!!!
June 16th, 2008 at 14: 46.45
Car Duty vs Fuel Subsidy, Where Had The Car Duty Gone To?
Recent fuel hike had sparked anger across the country asking Petronas account to be made available for public scrutiny to justify why the government cannot continue to subsidy the fuel. May be all these while, Petronas may not be footing 100% of the fuel bill, is the car owners had paid in advance for fuel subsidy in form of import and excise duties for both local and foreign mad vehicles, as suggested by one article published in the Star recently, and republished by Malaysia Today.
Following up on this topic, I had done a little research myself, and may be others had already done it but did not get highlighted in a wider angle. I had visited the website of Malaysia Automotive Association to get the statistic of total vehicle sale from 1986 till 2007, to get a broad idea of estimated excise and import duties might have been collected by the government since the inception of Proton, as the import duties were imposed for the excuse of protecting our new start up that suppose to make our nation pride in years to come. Well, Proton is not an issue for our discussion here, so we will not talk about it’s success or failure and the failure cost to the rakyat. Let’s us guestimate how much we had contributed to the government coffers since 1986.
Total vehicle sales since 1986 amounted to 6,264,910 units, both passengers and commercial vehicles included. (Source: http://www.maa.org.my/info_summary.htm). Assuming the ratio of 60% of total vehicles being locally produced, and rest of them are being imported. Also assuming average duty collected from local car is RM 10K each, and RM 50K for imported vehicles. Please note that I had made broad assumption, as the actual figure was never reported by the government in their annual budget and accounts.
An estimated of RM 162 billions had been collected over the past 22 years. Actual figures could be much higher as import tax was relatively high in the 90s before we signed the ASEAN free trade agreement. Where had the money gone? How much fuel subsidy had been given by the government on fuel after being offset by the car duties?
Such amount can be used to build a comprehensive rail network comparable to Japan and Europe, where almost all major cities are connected by rails. An efficient metro networks can also be build in Klang Valley comparable to London, Hong Kong and Singapore.
I hope the MP will continue to ask for actual figures in the Parliament and show to the rakyat that the car duty and Petronas proceed had been used in an accountable way.
June 16th, 2008 at 14: 47.30
YB Lim,
As a concerned citizen, and with the increase voice of opposition in the Parliament now, I hope you can bring up this issue at the next opportunity of Parliament seating. All people across the nation, (also across the globe) are angered by continuous subsidy cut by the government, for the lame excuse of soaring energy price in the world market, which they have no choice but to bite the unpopular bullet. Of course, in my own opinion the subsidy issue can be dealt in a better way as the high oil prices are only speculative in nature as those with purchasing power are hoarding the commodities for selling at higher price to make big profits, at the expense of the poor nations.
OK, back to the main point as my email today is not about subsidy, but an interim alternative to conserve the usage of the precious oil and stretch the current reserves longer so our children will not suffer when we run out of oil in the next decade or so, and also buy longer time for the scientist and innovator to find long term solution to our energy needs.
A proven and existing technology, call hybrid vehicle currently selling like hot cakes in developed market like US and Japan, is an interim call to the soaring fuel prices. The technology had been largely commercialized in the past decade to allow the vehicle to be affordable to most household, and currently the hybrid engine option is just merely a few more thousand USD compared to the conventional engine on the same car model.
However, in Malaysia, we don’t see this vehicle being imported in large number to give consumer an option to reduce consumption on petrol. WHY??? If the government is really sincere of conserving the oil for future generation, why are they not looking at importing hybrid in large number to bring the cost down? Forget about Proton producing such vehicle as they cannot even get their cost right producing a conventional vehicle, and Proton technological capability still 15-20 years behind the Japanese producers. Just a note that Proton did not make any profit last year, if it is not because of the government grant (subsidy) in the last quarter. For the sake of future generation, we don’t care about Proton survival, as it shouldn’t be setup in the first place. We are still forced to drive around a carburetor car like Kancil and Saga, which is totally not fuel efficient and not environmental friendly.
The government should remove the AP system immediately to allow importation of hybrid cars in large numbers, remove the import tax as we should not continue to protect Proton as it give no benefit to the Rakyat. We are extremely tired and feel hopeless with the continuous lame excuse given by the government and not acting in the correct direction for long term benefit. Squandering public wealth is their only objective in mind. Changing lifestyle is not as easy, as majority of people who drive still needs their vehicle to get to work. Hybrid vehicle will reduce the fuel consumption by half, and meet the government propaganda for a fuel conservative nation.
Cars coming from Singapore and Thailand should be charged entrance fees as what Singapore is charging us. This will recoup the subsidy loss to foreign cars and national, and also discourage the Thai cars coming in solely for fuel. Charging the Mercedes, BMW and a range of luxury cars with higher road tax also another way to recoup to subsidy loss to the group who does not deserve the subsidized fuel.
If the present government cannot change this, then we should look forward for the PR federal government to bring us new hope.
June 16th, 2008 at 14: 51.06
Lakilompat,
Don’t reply to that kasim amat’s posting. Let him rant and rave and reveal more of himself. You and I comment because we believe in contributing. That guy is paid, see the difference? Let him do his job, otherwise he would not be paid.
Let us read a little more of his comments before we reveal who he is.
June 16th, 2008 at 14: 53.23
Badawi’s April 13, 2006 proclamation to the nation - “This is the Government of the people, for the people, by the people” - poured foundation for a house in my heart!
But, alas, barely two years later, the foundation in my heart has all cracked up and crumbled
The proclamation was not kosher! He didn’t mean what he said and he didn’t say what he meant
Otherwise, how could he explain why Pertronas accounts, Toll agreements, government contracts with Independent Power Suppliers, etc., which have a very direct impact on the livelihoods of all levels of our society, are still being kept secret from the rakyat? WHY? WHY? WHY?
The BN government should know by now that this repeated tenor of Mahathir’s administration can no longer stand, let alone work
And that its Pollyanna arrogance that the voice and anger of the rakyat will die down if they drag their feet hard and long enough could most likely prove to be a death knell for BN.
We therefore call on all people to join hands and vow that we’ll wrap this in aluminium foil and open it to remind ourselves of BN’s arrogance before we vote again next time.
To BN: “Beware the ides of septem!”
June 16th, 2008 at 15: 09.38
No matter what the government does it will not please everybody. As long as it is good for the future for everybody, the government does not have to be afraid just because of a small fraction of people opposes to it. By the way, I believe in contributing constructively to this blogs but I also believe everyone should write responsibly and not insulting each other. I am not paid to do this. Please do not label me as BN supporter as I am just like you, an ordianry person who loves this country.
June 16th, 2008 at 15: 14.57
We should not just look to Petronas for money to subsidy every thing but to improve other wastages e.g. govt should remove all road bottlenecks immediately to avoid traffic jams e.g. MRR II at Pandan Indah where three lanes highways were reduced to two lanes for many years without action to improve it from any govt ministry !!! The Salak expressway near Mid Valley, where three lanes were reduced to two lanes. Many highways didnt have exits or entrances e.g. Putrajaya highways which prevent cars from using the shortest route to other connecting highways and ended up wasting much fuel as a result of selfish self interest!!! Another good e.g. is Markota Cheras residents need to drive additional 6km coupled with traffic jam to access kajang highway!!! Time to remove waste!!!
I would like to suggest govt to require Proton and other car makers to install fuel efficient gadgets to improve fuel consumption e.g. turbo charger for every car produced to save fuel!!!
June 16th, 2008 at 15: 16.11
Ya, what plaintruth said about Petronas is true, local engineers in Petronas are mainly doiing simple job like arranging for painting, transport, minor repairs / servicing, etc.
Major engineering designs, installations, planning are undertaken by expatriate engineer, or source out to external engineering consultant firms / contractors, after 33 years (since 1975), it is still the same.
June 16th, 2008 at 15: 22.56
Guys,
Realworld > Killer > Kassim Amat - ring a bell???
June 16th, 2008 at 15: 26.07
Plaintruth Says: “…Petronas is not as effecient as outsider think. Once oil price drop Petronas and malaysia is going to be in deep trouble”.
Well, then Malaysia will have not one but two problematic companies with the same initial “P”to contend with. Nice!
June 16th, 2008 at 15: 26.12
//i_love_malaysia says: Guys,
Realworld > Killer > Kassim Amat - ring a bell???//
I can only say this comment is nonsense and baseless. Please ignore the postings from this guy.
June 16th, 2008 at 15: 28.10
Plz Investigate this trip…
Federal Territories Minister ,Mayor and some 15 officers went on an expensive trip to Berlin, London and Vancouver. this trip is really expensive trip. all route is via 1st Class ticket n 5 star hotel. that includes the wife as well.. why the wife need to go along when the wife’s “MENGABISKAN DUIT RAKYAT” coz at the wife doenst follow the deligates.. the wife just having a good time shopping, shopping shopping…..
and This RAJA ZUlhasnan thot that he is super Raja…need to treat as real VVIP…. plz check the travel agent who handle the trip.. doesnt it follow the procedures… or what erm erm erm..
June 16th, 2008 at 15: 38.29
Say~! Say~! Say~!
The price of gasoline at the petrol station is set by the Government, not PETRONAS.
PETRONAS has done its patriotic duty by paying the dividends, royalties, corporate tax, petroleum tax etc to the Government for YOUR benefit (rakyat lah).
And bear in mind that 30% of its revenue comes from overseas operations, thus bringing in foreign exchange to the country.
OK. Assuming that you buy this idea proposed by whoever it was.
So PETRONAS will have reduced revenues. Bear in mind that the costs of operations are also increasing. So the profits are reduced. Then PETRONAS and other oil companies pay less taxes.
Then the Government will have less revenue. (Note: at least 40% of Government revenue for 2007 came from the oil industry). With less revenue, there will be less Government projects (you can then forget about bridges and highways, and rail tracks, and smart schools and not-so-smart universities, and hospitals, etc). So contractors and consultants, and con-sultans and con-cronies will cry and scream. Makan batu lah..
The Government has already announced freezing of recruitment. So, many new graduates will be unemployed. Makan batu lagi. Maggi mee pun tak mampu dah.
Later, all sorts of allowances for civil servants will have to be withdrawn. Treasury tak cukup duit.
On top of that the oil industry may have to scale back many of its new investments, totaling about 45 billion ringgit over the next few years. Contractors, service providers, steel fabricators, maritime service providers etc will join the ratapan tangisan – no jobs.
Don’t forget that PETRONAS is sponsoring thousands of students in universities and even high schools – at any one time there are more than 4,500 university students being sponsored by PETRONAS in Malaysian universities and overseas. Also more than 2,000 high school children receive minor scholarships – children of poor families.
Kalau PERTRONAS tak ada duit, kesian lah mereka di atas tu. Shall I ask them to see the proposer of this idea (to boycott PETRONAS) and seek help from them instead?
So, it is to YOUR benefit that you make sure PETRONAS keeps making enough money to support YOUR Government so that your children can continue to go to school without paying for fees and books, and to go to universities at peanuts rates.
CONCLUSION: Help yourself and your family and your country by making sure that PETRONAS keeps making profits. Go to the nearest PETRONAS station and fill up now!!
Don’t forget that if you go to non-Petronas station, the profits that these companies get will go their shareholders OVERSEAS.
So, be patriotic. Do your duty. Go to PETRONAS~!! Hoooooooooooooo~!!!
June 16th, 2008 at 16: 03.01
It is a fact doctor that the price is high but when we compare with other countries we are still better off.We are a tiny producer so our output cannot be compared to the giants.We sell at the market price and since Petronas is a government controlled company it has to play the social part.Government gives subsidies where it benefits the majority.The rich has to pay because they earn more in the same environment.As a doctor you know that a capsule of antibiotic might costs just 20sen but the consumer can be made to pay as high as RM2.It finally depends on the doctor who knows the background of the patient.The patient does not complain because he can afford it.The same goes to fuel.Thegovernment knew that the people can afford .Besides all the way from upstream to downstream people are making money.This had been our life.When the people voiced their concern and prices of other things started soaring up the government had to face the displeasure.They made sure that the poor will not suffer.The gains of the government goes back to the rakyat and so why the fuss unless we fear that cronies will enjoy that largesse.
June 16th, 2008 at 16: 03.53
@UtopiaInJapan
What Wastage are you talking about? at RM1.92 do you see more than 50% of Malaysians simply waste petrol/diesels ? Those kind of view you are having are typical Selfish Capitalistic Economist/Analyst.
Subsidi is still needed until the Government either BN or PR (Its PR, BN=Hopeless) improve the STANDARD OF LIVING by finding a way in getting more pays for workers/staff both civil and private sector , less tax and import duty on Cars Sold in our country, and improve or establish a comprehensive Public Transport Network NATIONWIDE, not just KL, other Major Cities like Penang, JB, Shah Alam, Kota Kinabalu, Kuching, Ipoh etc etc.
If those are not achieve, dont even dream about talking for a Market Price Petrol at our Petrol Pump. It will literally Kill majority of malaysians and thus we fall into a HEAVY RECESSION as our Purchasing Power goes down and people/small business starting to delcare bankrupt.
June 16th, 2008 at 16: 15.09
Dr. Chen ideals in Malaysian politics through his past struggle has been an inspiration source for younger generation. With persistent struggle in DAP, his contributions is enourmous compare to ex-DAP leaders which end up holding BN post or working for Umno such as LLThye. Only true fighter will gain highest respect especially to young generation.
Your piece of analysis above should guide new and young DAP MPs into next course of political action. A new DAP MP has voice support to BN fuel hike in public with his own analysis. Fuel hike issue should be capitalised by Pakatan Rakyat to topple Umno’s BN, this is the best chance after 51 years of neo-colonial style government.
June 16th, 2008 at 16: 24.28
Kasim Amat = RealWorld, the Chelsea supporter who has enough money to go to Stamford Bridge for live games, and who drives a Bentley around town, oblivious to the new petrol price.
June 16th, 2008 at 16: 32.14
“when we compare with other countries we are still better off”
OMG! i will not agree to that statement. Which are the other country you compare? Ethiopia?
June 16th, 2008 at 16: 34.01
why is father Lim so afraid of an Islamic state and hudud laws?…. I suggest he go do a detail study of this proposal…coz it will benefit the people more if we have such laws enacted…..I support hudud laws coz it would meant that those who are bent on doing evil will have to think twice before commiting them those stealing and robbing and raping etc etc…PAS i support u.
June 16th, 2008 at 16: 35.57
Kasim Amat:
When we call BN a den of thieves, we have every reason to label them as such.
When APs are being issued in favour of select UMNOputras, that’s stealing because the money doesn’t go to the rakyat. It’s a form of tax, but somehow it goes into the pockets of UMNOputras. UMNO wants the AP system to continue until 2020. Stealing is a hard habit to break.
When concessions are being given to select UMNOputras at the rakyat’s expense such as the labelling of liquor, cigarettes and medicine, that’s also a tax. This tax doesn’t go to the treasury; it goes into the UMNOputras’ pockets. Ask your beloved Kerismuddin how his brother managed to get into this category.
When contracts are being given to select UMNOputras without competitive tender and without regard to experience or qualifications, that’s also stealing because the leakage goes to UMNOputras. Why is SCOMI getting billions in refurbishment contracts without tender ? Why is an unknown company getting a RM650 million contract to build the new palace ? Ask your beloved Najis how a company like Ombak Laut can win a RM 510 million servicing contract for defence equipment.
Kasim Amat aka RealWorld, we went through this before. Your UMNO masters know who we are, and where we are. If they feel that they have been slandered, they can always take us to court. Obviously they are unwilling to take us to court because the various documents and contracts would have to be tendered in court.
Stealing is a hard habit to break.
June 16th, 2008 at 16: 39.58
Dear All,
I would say that it takes a strong stomach to weather the ups and downs of everything i.e. be the market, relationship and life. It must however be reconciled that these ups and downs are unavoidable if we are to grow stronger and more resilient. Similarly the current hike in crude oil which reached record high of USD135 per barrel would have the same bearings on Malaysians as it now turning out to be. Are we going to see the days of petrol at RM1.08 per litre as we did just barely ten years ago?
Not likely going by the dossier of prints appearing on our dailies everyday. The current government regime is on an austerity drive so as to save more money for our future generations. Removing fuel subsidies is among one of the big ticket items which the government had decided to move on with and earned the wrath of the public as a result. The government is now ready to publish the Petronas accounts and better comments and judgements can then be offered after reading the content. We shall reserve our comment till the accounts are made public.
Removing the subsidies is something we should work on but the government should have been more sensitive on the tune of increase. It is a way of preparing Malaysia to be a country free from subsidy mentality going forward into the future. How much longer that we want to be aided? On one hand there are incessant calls for the removal of NEP but on the other we are shouting back on the adjustment on fuel subsidies. Are we not contradicting ourselves to say the very least?
Iraq has suffered from an acute shortage of oil since the US led invasion. Going through a series of hard-pressed situations, IMF had forced the newly installed Iraq government to reduce oil subsidies so as to meet its debt-reduction requirements. This was demanded on Iraq upon which they were suffering from 60% unemployment and rampant poverty. For the case of Iran, we must be aware that motorists can only purchase 100 litres a month at the subsidized price of RM0.36 a liter. In 2007, 20 petrol stations were torched in response to the rationing programme adopted by Iran.
My point is that we have always look out for the least resistance approach to solve issues. However, I am not saying that the upward petrol price adjustment is justified but we need more datas to support our argument.
Let’s wait for the Petronas accounts be made public before further fuelling our comments as to whether the justification of the recent government’s move.
June 16th, 2008 at 16: 59.57
Godfather:
We will not hesitate to do so if you continue to slander UMNO baselessly. This blog is not for you to criticise the government!
June 16th, 2008 at 17: 27.55
Baselessly ? Take me to court, and I will show you the meaning of “baseless or not”. UMNO - nothing more than common criminals.
June 16th, 2008 at 17: 28.56
“We are not in the business of cheating the people.” AAB, 2005
So if I call your boss a liar, will UMNO take me to court ?
June 16th, 2008 at 17: 30.04
This blog is for me to write what I think of the government, especially UMNO. As you can see, I think very little of the den of thieves.
June 16th, 2008 at 18: 01.14
Kasim Amat: ‘Singapore is small and it is easy to manage’ .
Thats half truth, and is incorrect in term of economic progress .
For a small country with practically no natural resources, singapore has the hardest mill to grind in terms of raising her gdp and elevating her citizens way of life.
The easy is only in term of the lesser digit describing her geographical area and population - lesser digit to write. That is the easy part.
June 16th, 2008 at 18: 05.44
Dear Kasim Amat,
don’t go barking up the wrong tree….whatever Godfather has said about the government is not slanderous.
It is a fact that we have a truly inefficient government - the government cheated the people by not being transparent enough. It is the right and logical for the Rakyat to feel that they are cheated because petronas accounts and it’s conduct are hidden from the knowledge of the People.
Why hide it if there’s no evil activities going on?
Perhaps you should polish up on your knowledge or “intelligence” before issuing threats here. Natural resources belong to Citizens and government officials are the servants of the Citizens, it does belong to UMNO, BN or government. Thus, we have the right to know:
1. Why hide the accounts of petronas?
2. Why only the PM of Malaysia has access to its accounts?
3. Why raise price of pump? What basis for it?
4. Why no actions (remedies) are being taken, even though international media has already confirmed the price hike was due to speculative trading?
5. Why are international communities protesting throughout the world? For what? Are they any dumber than you?
6. Idris Jala, MAS boss, former Shell hotshot recently said in the Star, that there is no evidence of shortage of fuel in the world, the Star went on to say that Idris is more than qualified to make statements in this area? Why?
7. AAB is a liar - because during PRU12, he said his government wil not raise fuel price at least until Ogos, but his government under his direction raised it in June - isn’t he a liar?!?!
8. Lastly, on behalf of all democratic bloggers here, I say to you that you are not welcome here in this blog unless you show some intelligence and respect to democracy.
We want bloggers with open mind NOT “dumb bloogers”.
This blog don’t need you and Malaysia don’t need you either!!!!
SEPT16 OR PRU13!
ONCE AND FOR ALL!
June 16th, 2008 at 18: 09.20
TYPO ERROR: IT DOES NOT BELONG TO UMNO, KASIM…..EXCUSE ME
NATURAL RESOURCES DOES NOT BELONG TO UMNO!!!!!!!!!!!!
June 16th, 2008 at 18: 24.36
Singapore is small and it is easy to manage. Don’t forget, the reason why Singapore can have such achievement is because they abandon their own Malay, Indian and Chinese culture and switch to western culture. - Kasim Amat
====================================================
You are so wrong Kasim
Chinese there still have their dialects Hokkien, Hakka, Teochew
Malay still got Bahasa Melayu
Indians can still speak Tamil
The reason why they are successful IS NOT because they adopted western culture.
THEIR SUCCESS WAS DUE TO THEIR ACCEPTANCE OF RACIAL DIVERSITY AND IMPROVEMENT FOR ALL.
NOT ONLY THEY CAN SPEAK THEIR NATIVE TONQUE, THEY CAN ALSO CHOOSE IN SCHOOL TO TAKE FRENCH & MANDARIN ALONGSIDE THEIR NATIONAL LANGUAGE - MALAY OR BAHASA MELAYU! DO YOU KNOW THIS?! I BET YOU DON’T
DON’T BE SILLY KASIM…TAKE WHATEVER INDOCTRINATION YOU GAINED FROM YOUR BOSSES AND GO PLAY SOMEWHERE ELSE!
June 16th, 2008 at 18: 35.36
Re:
kingkenny Says:
Today at 18: 24.36 (4 minutes ago)
Unfortunately… no… love it or not… Singapore has its very own racial problem… only hidden by the strong dominance of Chinese ethnics (~80%) and the strong political dominance of Mr Lee Kuan Yew…
The Great Mr Lee introduced GRC system in its electorate system, so as to make sure the “minority” to have rep in the parliament… but at the same time… it means a maximum of 13 “minority” MP in the parliament… talking about racial politics…~~
June 16th, 2008 at 18: 36.22
RM 625 works out to be 801 litres of subsidized petrol at the old price. It is 2.2 litres a day which would cover 30 kilo metres for a small car everyday. People traveling longer distance will have to pay the full price.
It is said that sale of fuel has decreased by 30%. There are fewer cars on the road resulting in less traffic jams and better fuel economy. Some may have turned to public transport which would become attractive with less traffic jams on the road, and shorter travel time. The fuel price increase has brought some benefits.
If the fuel price has to be increased to its present level, it is better that it is done in one go. It represents a change which a correct respond could be worked out at once. Fuel price increase at whatever amount has been the reason for price increase of other items. The gradual increase in fuel price to the same amount now would eventually bring about larger price increase of other related or not related goods or services compared to the increase of fuel price at one go.
June 16th, 2008 at 18: 37.17
Because of the fuel price hike and subsequent torrid economic conditions, more workers, in this case security guards, are taking 2nd jobs
http://www.nst.com.my/Current_News/NST/Monday/NewsBreak/20080616153015/Article/index_html
June 16th, 2008 at 18: 42.29
Soli ya dah out topic~~
http://www.malaysia-today.net/2008/content/view/8851/1/
I just wanna say this is really bullsh*t… PKR perak chief might as well say… “We are DAP-phobic, no Ipoh Mayorship for DAP please”…
So what if the local election finally come? So what happens to thousands of mayors in the world who actually hold a partisanship? Even more interestingly, the (elected-)mayor from the super metropolitan London is actually a conservative MP (just resigned) when the Prime Minister who resides in it is a Labour! The ex-elected-mayor of London was an MP and What say the PKR veep on the Lord Mayor of Sydney who also happened to be an MP from the NSW state parliament?
I must well-warned that more and more people turned DAP-phobics after March 8th… not sure why but I can feel it from the media… DAP has become the prime target of BN alongside with Dato Seri Anwar Ibrahim, but at the same time a prime target within PR…
or maybe I’m getting too sensitive…???
===============================================
I disagree that Malaysians should stay low fuel-price…
errr… why awaiting moderation?? because of the word bull something?
June 16th, 2008 at 18: 45.32
Dear ch,
while I appreciate what you shared here with us, I can’t help but think whether we can still trust what is published to us by the current government!
Can we?!
It is as normal as “makan nasi” for them to “show proofs” only when they are pressured! That also have to wait for months!
If everything is honest and in order, they can publish it in 48 hours at the most. A simple P&L is all that is required for us to see, albeit it is a very long P&L. With the power of internet, they can even show it on their website annually and perpetually!
The moral of the question is why NOW? And only after so many years of pressure from the Rakyat? Is it this tsunami (PRU12) had finally rocked and shaked their guts hard?!! Their arrogance and ignorance of the people’s voice thus far has only given the People more reasons to suspect foul activities - and it is only logical!
The only thing keeping Malaysians out of the streets is ISA and the ever corrupted police forces! We have no choice left, don’t you think 50 years is enough?! You are asking us to take a gamble here man, I don’t think Malaysians have enough chips for this round!
Can we trust what is published?
Reforms must be initiated and it must involve more & more Rakyat, everything will be out in the sun. And UMNO/BN is not going to do it for sure!
Let a NEW Malaysia emerge, please. UMNO must go, they have plundered enough and made enough damage already!
June 16th, 2008 at 18: 50.31
Dear bentoh,
then I’d better have their problem than here. It’s the same over here anyway, at least their country PPP is much higher than ours and their citizens have a good standard of living.
I shouldn’t be complaining if I am their citizen, at least they gave me a chance to live!
June 16th, 2008 at 18: 52.37
Dear bentoh,
and more importantly is :-
I HAVE CITIZENSHIP STATUS OVER THERE!
June 16th, 2008 at 19: 04.33
And dear bentoh,
we are only “hamba” or second class citizen not “Bumiputera”.
Less scholarship for yellow or black kids, no housing discounts, ineligible for low cost house, license here and license there, after all else fails, they want “duit kopi” for every little imaginable services they provide us.
I once went to MP*J to apply for a license to trade or “lesen jalankan perniagaan”, you would cry at the amount of time it took. A friend told me because of my skin it is taking a long time, they are “expecting” it! My friend ran the errand for me.
June 16th, 2008 at 19: 12.39
The Government has introduced a series of remedial actions to help the poor to withstand the impact brought about by the fuel hike. To increase the fuel price is the last resort and we can’t blame the government for doing that. We should appreciate the efforts already put in by the BN government to help the majority people such as rebates and cutting of Minister’s benefits. Sadly, most of the people still do not understand the real intention of the government. They even thought naively that Anwar will not do the same if he takes over the government. For Allah’s sake, Anwar has betrayed Malay and whether or not his party will take over the administration is still a big question mark as the majority of Malay still supports UMNO. Unlike Anwar, UMNO looks after the benefits of races with the benefits of Malay vis-a-vis the provisions under the Constitution which is to accord them with special rights so as to bring balance to the weath distribution pattern in Malaysia. This is to ensure racial harmony.
Can Anwar be accepted as a leader by the majority Malay? I doubt so. UMNO is the only party that can represent Malay and continue to fight for the benefits of the poor. If this benefits are taken away overnight, there will be turmoil which Anwar certainly does not want to be responsible for. It is hard to understand that people are still questioning the validity of the special rights accorded to Malay after 50 years of independence. Nevertheless, it is pleased to know that a lot of Chinese agree with me that if the wealth distribution is skewed to a certain ethnic group, there will be serious problems in social stability. Those that still calling for racial equality please study the history of Malaya before doing so. The special rights accorded to Malay is lawful and is unquestionable.
June 16th, 2008 at 19: 16.03
AND DON’T FORGET bentoh…..a large chunk of tax collected are from NON-BUMIPUTRA!!!
They then take it to build surau, mosque, schools, low cost house, give scholarship to Bumiputra, subsidies and etc.
and when Non-bumi speak - we are called slanderous & seditious! Beware of ISA! AAB say “Polis kata Jangan”
I very much prefer Singapore’s GRC than malaysia’s ISA to be honest!
June 16th, 2008 at 19: 25.49
Kasim Amat:
The real intention is to STEAL. It’s a hard habit to break.
June 16th, 2008 at 19: 27.05
UMNOputras’ right to steal must not be questioned. They even claim that it is lawful !!
June 16th, 2008 at 19: 39.50
Seriously, Kasim Amat aka RealWorld, I have been so touched by the government’s concern and generosity towards the poor. I am so touched by Badawi’s concern for those affected by the fuel price hike, so much so that tears well up in my eyes whenever I think of the sacrifices that the government is making for the rakyat.
I know that behind Badawi’s sleepy demeanour is actually a person who is so concerned with reform, particularly about fighting corruption. I know that he may not say much, but he is definitely listening. I know he needs more time, and I know he has a strong mandate from the rakyat.
Like I said, UMNO’s generosity is second to none, and for that I am so grateful that tears flow freely down my face each time I think of the hardship that UMNOputras must go through in sacrifice for the rakyat.
June 16th, 2008 at 19: 43.19
I am not sure why alot of people including you kit said petronas account is not public when it is. just go to petronas website it is there for all to see. Furthermore, Petronas is rated by S&P and Moody’s. I am really in the dark as to what’s all this politicians are talking about
June 16th, 2008 at 20: 01.15
perhaps the sil’s agenda to open the petronas books if to highlight the role petronas played during the currency crisis and the mamak fingers….
June 16th, 2008 at 20: 12.08
Hoi.Kassim Amat.Are you that stupid? Godfather is just very sarcastic over your various remarks.50 years after independence,we still have a typical racist like u around.Of course we have many like you around.That is why our bodohland is so shit today.Wake up,all the racial bigots including the big mouth old man,Obama,a black may even become the President of the majority white and the most powerful country of the world.So what is wrong with Malaysia where the 3 major races fought for independence on equal platform from the British is still divided on racial lines,bumi and non bumi,etc? Think hard and be sincere if our so called leaders really want to build a true Malaysian Malaysia.We do not want Melayu Malaysia.We want a Malaysia where people are treated equally,not like now we have many classes of people,the umnoputras,the bumi,the non bumi.
June 16th, 2008 at 20: 12.31
Now it seems rather clear that the two statements by Kasim Amat, which I commented on a few days ago, are not really meant as sarcasm. They are genuine pro-Umno and pro-BN statements.
However, there is hardly any substantial argument in his series of opposition bashing and pro-government postings.
June 16th, 2008 at 20: 28.44
Currently I’m living in Egypt. I can say that the price quoted is incorrect. That is because the fuel price in Malaysia of RM2.70/litre is for RON97. But in Egypt, the highest grade is RON95. And the price is EGP2.75 or about RM1.66/litre. The Egyptian government has just increased the fuel price for RON95 in early May 2008 by 57%! That is even bigger than in Malaysia.
Secondly, the Egyptian Government is giving a lower fuel price not because they care about the people - it is because if they do increase the fuel price similar to even Malaysia’s price - there will be a huge riot, and President Hosni Mubarak will definitely be toppled down! Egypt is an underdeveloped country with high unemployment. Carrefour are only for the rich (and even mid-income people are finding it more difficult to shop there. Inflation has reached highest level last month to almost 20%!
Do you really want to compare Malaysia and Egypt?
June 16th, 2008 at 20: 35.52
Saudi Arabia RM 0.38 per litre
UAE 1.19 / litre
Egypt 1.03 / litre
Bahrain 0.87
Qatar 0.68
Kuwait 0.67
Iran 0.35
Nigeria 0.32
Turkmenistan 0.25
Venezuela 0.16/litre
MALAYSIA 2.70/LITRE
Can someone really show how this figures has been calculated? Sometimes it is not enough to just read a report and assume all is correct. Please provide link to this price website. I would like to know whether we are comparing apple-to-apple. We are all educated here, put emotions outside the door.
Then I will believe.
June 16th, 2008 at 20: 47.39
I agree with “Oknyua” that it’s better for all of us not to reply Kasim Amat’s posting. His postings didn’t even worth a reading. Most of his postings have very low facts value and childish, and some of it looks like coming from a caveman.
Saudi Arabia RM 0.38 per litre
UAE 1.19 / litre
Egypt 1.03 / litre
Bahrain 0.87
Qatar 0.68
Kuwait 0.67
Iran 0.35
Nigeria 0.32
Turkmenistan 0.25
Venezuela 0.16/litre
MALAYSIA 2.70/LITRE
Our country fuel price worth every sense of comparison to the above country, even Indonesia should be included coz their fuel price lower than us. Of course we can’t follow their price, but not at a sudden 40% and 63% hike without proper study on its inflation effects. Our country has everything we need to develop like Japan n South Korea. We have sea, lake, river, mountain, forest, land, grass, sand, minerals, perfect climate (equator: middle of earth) n etc. We have everything!!!!!! How many of those countries above have everything like us? Our fuel price totally unacceptable different from them b’coz the peoples who run our country were extremely greedy nowadays.
“There is enough for everyone’s need but not everyone’s greed” Mahatma Gandhi
June 16th, 2008 at 20: 49.45
You can access the summary of the above journal article on the publisher’s website:
http://www.blackwell-synergy.com/doi/abs/10.1046/j.1365-2710.2000.00304.x?prevSearch=allfield%3A%28phenotypes+among+malays%29
June 16th, 2008 at 21: 01.04
Dear Lee Wang Yen,
very informative. Now it confirms my suspicion of why they can sometimes do what they do!
Thank you.
[Several posts which have completely gone off tangent from this thread have been deleted. -Admin]
June 16th, 2008 at 21: 16.40
To Kasim Amat,
I suggest u stop making any statement in this blog. The more comments u makes, the more u expose yourself as a complete moron. This is for the sake of human knowledge. Otherwise, u will pollute the knowledge and this wills inturn becomes an absolute disgrace to the human race.
June 16th, 2008 at 21: 20.24
I read with disgust the sick old mamak in Malaysian politics has again started (to distract and divert attention from the recent price hike and the corruption of the judiciary that he masteminded) make seditious comments about the so-called threat Malays that he, a mamak, has taken upon himself to champion.
Why is the government handling this diplorable miscreant with kid gloves?
He is clearly trying to create animosity and disharmony among the various races in the country for his own selfish ends. He is still harping on May 13th infamous riots. Apparently he is inciting the gullible ones to unleash another so as to gain political milage for his son, cronies in UMNO and himself.
The government should slap the ISA on Mamakthir for formenting hatred among the Malaysian races detrimental to national security.
He should be safely locked away in Kamunting under the ISA. Shut him up now before he causes more damage to the peace, harmony and progress of the nation.
June 16th, 2008 at 21: 40.20
Does this thread seems like it is pissing into the wind?
June 16th, 2008 at 21: 45.16
“Don’t forget, the reason why Singapore can have such achievement is because they abandon their own Malay, Indian and Chinese culture and switch to western culture. ”
Talk cock.
June 16th, 2008 at 21: 47.56
Kasim Amat said:
“I am glad that this guy who calls himself Godfather finally understand and appreciate the efforts undertaken by the government. I hope the rest can also think deep enough on the issues and do not fall into the traps of the opposition.”
The tears have not stopped falling from my eyes ever since I made the confession about our hero Pak Lah. However, since your comment above, my Sicilian brethren have not stopped rolling about on the floor with their sides split.
I guess many of those who comment on this blog have also been rolling about on the floor judging by their comments above.
June 16th, 2008 at 22: 03.06
Kasim Amat Says:
Today at 13: 16.19 (8 hours ago)
‘…Don’t forget, the reason why Singapore can have such achievement is because they abandon their own Malay, Indian and Chinese culture and switch to western culture. The Singapore government made these sacrifices in order to trade with materialism and prosperity in disguise. China, Japan and Korea they all have long historical background and they are lucky because other developed countries have helped them a lot along the way. Malaysia still has its own culture and it maintain a strong hold on the National Language…’
Kasim Amat says that Singapore abandon its own Malay, Indian and Chinese culture and switch to western culture. He’s proud of the fact that the Malay culture is still preserved in Malaysia. However, history tells us that the Malay culture has been shaped by many different cultures and religions. For example, the Malays practised Buddhism, Hinduism and native animism before they converted to Islam.
June 16th, 2008 at 22: 05.10
oops… ‘Malay, Indian, and Chinese CULTURES…’
June 16th, 2008 at 22: 07.49
dear admin,
laziness is the root cause of all the problems in malaysia, hence inefficiencies tat created the domino effects.
June 16th, 2008 at 22: 43.09
Arthur J West and English civil engineer sweated under the then North Borneo sun [now Sabah] to design, layout and commanded the construction of the North Borneo railway. This was the period 1896 to 1903, a span barely 8 years. Renamed the Sabah Railways after rebuilding from the Second World War, that railway Mr West built is essentially still there, now very a tourist must try thing when in Sabah. It is the only railway line in the whole of Borneo Island, the third largest island in the world. It is still there today.
The point here is this.
If Mr West, a mere engineer and a mat salleh foreigner at that, could envisaged, planned and constructed a monumental contribution to the socio- economy of North Borneo, how and why is it that Malaysian Tuns, Tansris, Dato Datuks and YB YBs from 1963 to now have not contributed anything as monumental as this single foreigner [in just under 8 years] in Sabah in particular, and Malaysia in general?
With respect to Mr West, his arse must have sweated it out literally under the burning Borneo sun. This is to say such hard work he did for North Borneo, far away from his temperate home country.
Now, if only Malaysians are as lightly adorned, they could possibly have the energy to one up Mr. West.
June 16th, 2008 at 22: 47.29
Fact now, Msia commodities all fetching record high prices, petrol, palm oil, rubber, tin, yet gomen said they hv no money, hv to increase fuel prices drastically, (63% for diesel). just imagine, if the prices of all these drop back to 50% present prices, how they can manage??
Those who said Spore is easy to manage are ignorant, To start with, they hv a very small, very densely populated island, (3 vastly different races) no natural resources (hv to import food, water, even sand etc), practically no industry (back in 1965), surrounded by huge (relatively) unfriendly neighbours. so who can say easy??
June 16th, 2008 at 22: 52.18
But now, Spore is not so small already (in ASEAN) economically, they hv the 3rd largest economy in ASEAN (just push Msia to 4th place,) only Indonesia, & Thailand (or “Prathesh Thai” as prefered by Thai), had a bigger economy
June 16th, 2008 at 23: 17.54
Kasim Amat’s various comments in relation to the oil prices hike touch on some issues that are not directly related to the issue of oil prices, e.g. whether Singapore is easy to manage given its small size, and the question of special rights and privileges accorded to the Malays in Malaysia.
In response to Kasim Amat’s comments, some commentators focus on these issues that are not directly related to oil prices. However, while the various comments by various commentators on the size and manageability of Singapore and a comment that is clearly labelled by the writer as ‘off topic’ are left undeleted, various comments on the special privileges of the Malays and their historical origin have been deleted for being ‘completely off tangent’.
June 16th, 2008 at 23: 32.18
The BN’s government only talk about how much our country can save by reducing the petrol subsidy. Billions of Ringgit! Days in days out, our medias trying to spin the benefits of reducing the subsidy. Never once our government touch on how many billions our economy going to loss due to the multiplier effect of rising the fuel price. How many businesses are going to close shop, how many will be unemployed, the rising of crime rate and social unrest due to poverty? Did they ever calculate that? They just don’t care about how much the economy and the Rakyat are going to suffer because that’s intangible to them. They on care about the amount that they can lay their hands on!
June 16th, 2008 at 23: 38.54
Dear Admin,
my comments were not “completely off-tangent”, as obvious as it seems, and as Lee Wang Yen stated above, it is explicitly in response to Kasim Amat’s vile and incorrect comments about non-bumis here in Malaysia.
I do wonder whether you agreed with him when he accused non-bumis as thieves or robbers in our own birth land.
However, I sincerely hope, and will not ask of you to kick this user (Kasim Amat) out. Please let him stay on and continue mocking his own intelligence.
Below was taken from a super popular website, written by a journalist for the Japan Times:
>>Just like in 1970 when he wrote “The Malay Dilemma,” which documented the backwardness of the Malays over their habit of diluting their gene pool by intra-kinship marriages.<<
It is not my view alone. It is the view of the public, a former premier and a journalist.
UMNO is a party only…Malaysia does not belong to UMNO or whatever party for that matter…….
IT BELONG TO THE CHILDREN OF THE LAND!
June 16th, 2008 at 23: 41.13
Dear Admin,
AND RIGHTEOUS CHILDREN FOR THAT MATTER.
Thank you.
June 16th, 2008 at 23: 43.00
ONCE AND FOR ALL!
SEPT16 OR PRU13!
June 16th, 2008 at 23: 43.08
Another laughable article. Consider Iran’s oil subsidy.
Also contributing to the problem greatly, arbitrage opportunities, resulting from the difference between Iran’s subsidized price and the market price abroad, through smuggling with other countries, has considerably aggravated the shortage of gasoline in Iran, diminished its exports of crude oil, and illegally drained/stolen huge financial resources (counted in billions of dollars per year) from the government coffers (treasury - people’s money that is) into private bank accounts abroad[14]. No arrest has been made public to this day by the judiciary regarding the identity of the peoples responsible for this massive theft of the public property.[15]
Besides, studies have shown repeatedly that subsidies for gasoline mostly benefit the higher income strata of the population because they are the ones who can afford to drive cars or who can profit by using it as an input in their (export) businesses (eg. transportation) [16]. Therefore, it is advisable to ban gasoline subsidies altogether and transfer the subsidy amounts directly to the population equally or to the population who needs it specifically.
It must be noted that even if the government does not plan to target low-income Iranians for the subsidies, experts agree that in the worst case senario (the present situation that is), it would make more sense to distribute the same amount of subsidies in the Government’s budget (if not more) to the entire population equally and directly through cash payments.
http://en.wikipedia.org/wiki/Ministry_of_Petroleum_of_Iran