It might be late for me to talk about oil price since this issue has been discussed in newspapers, television and some other media. I was busy these few days, studied for BITK exam (this exam is for those who get RM40 allowance working in finance section -- if you pass this you will get RM40 extra, yes I know it is peanut but no one give you money for nothing ok?) which the exam was yesterday. It was very hard. Yes, no one will give you RM40 for free... remember?
At first I got a sms about the oil price will increase in August. Then I got another sms telling me that the oil price will be increase on Thursday June 5 2008. This was the worst oil price increment ever in Malaysia's history. Why?
1. The increment was announced without warning within 24 hours.
2. It is 40% increment worse than before -- which the price now is RM2.70 per liter (78 cents increment from the old price)
Ok I got some informations through newspapers, television, radio and also blogs. There are some blogs that catch my attention. They are Tun Dr Mahathir, Zaharuddin, Dr Mohamad Khir Toyo and Patrick Teoh.
I love this fact by Tun Dr Mahathir :
Can the Government subsidise? I am the “adviser” to Petronas but I know very little about it beyond what is published in its accounts. What I do know may not be very accurate but should be sufficient for me to draw certain conclusions.
Roughly Malaysia produces 650,000 barrels of crude per day. We consume 400,000 barrels leaving 250,000 barrels to be exported.
Three years ago the selling price of crude was about USD30 per barrel. Today it is USD130 – an increase of USD100. There is hardly any increase in the production cost so that the extra USD100 can be considered as pure profit.
Our 250,000 barrels of export should earn us 250,000 x 100 x 365 x 3 = RM27,375,000,000 (twenty seven billion Ringgit).
But Petronas made a profit of well over RM70 billion, all of which belong to the Government.
By all accounts the Government is flushed with money.
There are polls on Dr Mohamad Khir Toyo's blog :