Sunday September 16, 2007
Diesel subsidy can be maintained despite high oil prices
BACHOK: Malaysia can still maintain its subsidy for diesel although the global petroleum price has skyrocketed to US$80 (RM280) per barrel.
Despite escalating prices, the huge dividends from Petronas, the national oil corporation, are expected to cushion the impact, Deputy Finance Minister Datuk Dr Awang Adek Hussin said.
He said higher oil costs in the global market will mean that Petronas can allocate higher dividends to the Government which is the main shareholder of the company.
“We are in a unique position. Yes, oil prices have risen, creating concerns about its spiral effects but as we are a net exporter of fuel, we are somehow spared compared to nations who are net importers,” he said after presenting aid to the poor in conjunction with Ramadan at SK Keting Gunung here yesterday.
Nevertheless, the ministry is closely monitoring the fuel price because if it continues to shoot upwards, there is a need to determine what impact it will have on the country’s export-driven economy.
He said this when asked to elaborate on reports which cited bad weather in the Gulf of Mexico, where many oil refineries are sited, as a reason for another round of global oil price increase.
Asked about increased smuggling of oil products to neighbouring countries , Dr Awang Adek said the onus was on the country’s security agencies to prevent that.
He urged for concerted efforts among the Domestic Trade and Consumer Affairs Ministry enforcement division, the Royal Customs Preventative Unit, the police, the army and the anti-smuggling unit.
Smuggling of oil and diesel can be considered a form of economic sabotage so the enforcement agencies must be vigilant, he said.
Before breaking fast on Friday, Dr Awang Adek handed out aid courtesy of Tenaga Nasional Berhad (TNB) to 25 farmers.
Present were Jelawat assemblyman Datuk Dr Ilias Hussain and Kelantan TNB general manager Zulkifli Abdul Rahman.
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