We produce petroleum, shouldn’t we be richer with the oil hike?

My friend Kok Fah asked a brilliant question in his blog (C): Malaysia is a petroleum producing country, should we not be happy for the oil hike?

That’s exactly the point. The people of petroleum importers may feel sorry, but not us the citizens of a petroleum exporters. We should have been richer because our gain from petroleum revenue should exceed our loss in petroleum expense.

Why aren’t we?

What would happen to the windfall enjoyed by Petronas? Where’s our share?

These are the right questions to be asked. Hopefully, by July 12, Protes has found the effective discourse for its cause.

Read RPK for the right reasons to be angry.

One response to “We produce petroleum, shouldn’t we be richer with the oil hike?

  1. I cannot remember where I have read it before, but it seems that the revenue of Petronas has been fixed by certain contracts with some importing countries, regardless of global market price movement. And that’s the predicament we are in: the global oil price move up, our national income stays the same, but the subsidy that the government has to fork out increases because it’s pegged to the market price.

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