Petrol Increase : Govt Subsidy Vs Petronas Profit (Part 2)

Petrol Increase : Govt Subsidy Vs Petronas Profit (Part 2)

With reference to my earlier article on Government Subsidies and Petronas Profit dated 18 April 2008.
http://malaysiavoices.blogspot.com/2008/04/govt-subisdies-2008-vs-petronas-profit.html

On 17 April 2008,
On whether the current increase in oil prices benefit the country on balance
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the following :-

"It is true for every US$1 increase in the price there is a net inflow. It is certain that we will earn more in net terms ....., "


On 18 April 2008
Malaysia Alternative Voices published in its blog

"The subsidies from Govt to be enjoyed by the people (Rakyat) is only a small portion from Petronas profit or Taxes paid by Petronas to the Government of Malaysia"
2007 March - Petronas Financial Report
Petronas Profit Before Tax = RM 76.3 Billion
Net Profit = RM 46.4 Billion
Therefore, Taxes alone from Petronas = RM 29.9 Billion

Today, 5 June 2008

As the Petrol Price INCREASED from RM 1.92 to RM 2.70 ( 78 sen increase)
and ALL MALAYSIAN is feeling the pain and burden, i would like to share with everyone on how Dato Seri' Abdullah Badawi and Barisan Nasional Government Subsidy is spent.

The following are the Breakdown of Government Subsidy Allocation in 2007

Year 2007
(RM Million)
Total Subsidy for the Rakyat = 43,390

Petroleum Product Subsidy = 16,181
Gas Price Subsidy to Electrical Sector and Industri = 18,000
Other Assistance = 9,209
Paddy Subsidy = 949
Collective Interest Fund Subsidy = 503
Small Business Fund Cost = 400
Education = 3,911
Transport = 218
Orang Asli Fund = 15
Social Subsidy = 266
Other = 2,947

With the Drastic Sharp Petrol Price Increase from RM 1.92 to RM 2.70 , the Malaysia Government is expecting to save RM 13.7 Billion (RM 13,700 Million) .

Malaysia Alternative Voices
Point to Ponder by Malaysia Blogger

Petronas Profit Before Tax : RM 76,300 Million (2007)
Government Tax from Petronas Alone : RM 29,900 Million (2007)

Government Subsidy for Petroleum : RM 16,181 Million (2007)
Percentage of Government Petroleum Subsidy Vs Petronas Profit : 21.20 %

Government expected saving from Petrol Price Increase from RM 1.92 to RM2.70 : RM 13,7000
Percentage of Government Saving from Subsidy (2008) Vs Petronas Profit (2007) : 17.9%
(and Petronas Profit is expected to rise in 2008 as for every US$1 increase in the Oil price there is a net inflow)

Next Point to Ponder
Government Saving in Subsidy Vs Burden to the Rakyat (People) ?
Government Saving in Subsidy Vs Inflation ?
Government Saving in Subsidy Vs Effect on Malaysia Economy ?
(at the point of this article The Malaysia Stock Market Index has fallen by 36.85 point 11.40am, 12 hours after announcement of the Petrol Price Increase)

Is the PETROL PRICE INCREASE JUSTIFIED? It is up to ALL MALAYSIAN to justify based on the above Facts and Figures.........

Malaysia Blogger
Malaysia Alternative Voices