Wednesday, June 11, 2008

Oil Price Comparison


Why Malaysia as oil producing nation raised by 78 cents to RM 2.70 last week? You make the judgement.....please do not compare our oil price with countries that imports oil!!! Below excerpts from our discussion in the RMC yahoogroups on the oil price.

Bab naik harga minyak ni, there are 2 things to consider.. first why is there a need to increase the price since Malaysia is a net oil and gas exporter? second, where does the money go to? The first question can be justified as to why there is a need to increase since oil and gas reserve in Malaysia will diminish in 20-30 years some say by 2011 some by 2032 depends who you talk to. So we should not waste it while we have it. But the second question is of more importance. Where does the money go to? Is the accounts of Petronas audited and can it be questioned in a public inquiry say in Parliament. The fact that the accounts are not made public leads to a lot of suspicion namely corruption. Is the Petronas money being used by certain high profile personalities in this country for their own benefit. The government says that it will be used for development, but how much of it actually goes back to the people and how much of it disappears along t he way as government procurement and tenders are bump-upped, when government pays over the odds. I hope someone can suggest to our MPs to make a public inquiry on Petronas books and accounts.

Reply from my friend

Din,

As someone who works in the oil and gas industry, the reason why we pay so much is because our crude is sweet meaning there is no Hidrogen sulfide or H2S and it is light which means it does not require much refining i,e can save more money on refining costs. Also, our crude is also exported to other countries at a very nice hefty price. Our govt then buys crude of a lower quality for the usage of the people. This is how the govt makes money. Sell high, buy cheap. Also, during Mahathir's era, he had signed a long term contract with the japanese and korean and the price of the oil was locked in so we have no choice but to continue providing our crude oil to them. We are losing money because of this. The whole reason why they say our oil is subsidised is because of this. RM0.30 cents konon. Oil producing countries like Irag, saudi arabia, Venezuela, Brunei and Nigeria charge anywhere from RM0.30 to RM1.35/litre to the people. The UMNOputras are certainly living like kings because of this revenue. If only the Rakyat of Malaysia were using our own crude, we would be paying a lot less. The market price is high so they would rather sell it to the open market before letting it benefit the people of Malaysia. One of the ministers asked why the Petronas accounts are not audited. I think we all know how corrupt our govt is. They would do anything to protect the big guns. What happens to the normal guys on the street like you and me have to suffer with the increasing price of consumables.

It's a shame we didn't get to use the indelible ink in this year's Pilihanraya Umum other wise we would have a different government leading us. We need to see different faces. All this NEP bullshit does not benefit you and me. Just a select few. Why do we need to maintain this Ketuanan Melayu belief? Because they need it to protect their interests. I still see a lot of poor malays in the perkampungan areas. The NEP has not benefitted them at all. We need Ketuanan Rakyat!

Why the hell do you think Badawi wanted Idris Jusoh to be the Menteri Besar in Terengganu? Because he was their puppet and BN could continue to use the Wang Ehsan which used to be the royalty money promised to the Terengganu state govt. That Wang Ehsan at today's price is worth about RM1 billion. That's a lot of money. Something for you guys to think about if you are so worried about the opposition taking over. Just ask yourself what has the BN govt done for you and your family. We are all Malaysians born in the same country. We are no different from each other yet we are treated differently. Our religions teaches us that everyone is equal and that we should respect each other. Haiyah Mohiuddin, you got me fired up again.

Julian


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