The government is making an extra RM16mil daily says Federation of Malaysian Consumer Associations (Fomca) based on Friday’s crude oil price of US$44 per barrel and consumption of RM27.5 million liters per day.
The massive windfalls prompt Fomca to request the Government to reveal how it plans to spend the revenue says the The Star on Saturday.
Its secretary-general Muhd Sha’ani Abdullah urged the Government to invest the money in public transportation for the benefit of everyone. The crude oil price in New York fell to a four-year low at below US$44 per barrel yesterday, dragged down by demand worries amid the worsening outlook of the global economy.
At this level, the market price for RON 97 grade petrol should be about RM1.30 per litre, which is 60 sen lower than the RM1.90 per litre Malaysians are currently paying, the analysts said. Based on a consumption estimate of 27.5 million litres per day, this translates to roughly around RM16.5mil in extra revenue a day for the Government.
It is believed that revenue collected by the Government from RON 97 sales at local pumps ranged from a low of RM100,000 to as high as RM20mil a day since mid-October. This takes into account international oil price movements, as well as the four price cuts at local pumps over the period. Crude oil prices had slumped 19% this week alone, and was more than US$100 (RM360) down from at its July peak of US$147 (RM529.20) per barrel.
In all, total revenue for the Government from the sale of RON 97 over the past two months would probably be around RM500mil, the analysts, who declined to be named, said. This, however, excludes duty paid by pump operators for sales of RON 92 and diesel.
RON 97 is the most popular petrol grade among Malaysian drivers, accounting for about 80% of total fuel sales at local pumps. But while the Government gets extra revenue from fuel sales, as opposed to having to subsidise before, falling crude oil prices also means less profits for Petronas, the national oil corporation.
Income from Petronas, in terms of petroleum tax and dividends, accounted for about 40% of the latest national budget. Latest results showed Petronas made a net profit of RM42.7bil in its fiscal first half ended Sept 30.
This was 46% higher compared to same period last year. It would be tough to match that level of profitability during the current six-month period ending March 31, 2009. Sha’ani said while Fomca and consumers were agreeable that petrol sales results in more revenue for the Government, they should be told how their money is spent.
The people of Kuala Terengganu should ask Abdullah, Najib and Shahrir to explain how they gonna spend that massive revenue in the upcoming by-election as reported in Malaysiakini yesterday.
Did Shahrir telling us the truth when he said government should get away with oil subsidy? Apparently they had not been subsidizing our pump prices since October? Why didn’t they pass the saving to the rakyat?