Wednesday June 11, 2008

Shahrir: Petrol money used as subsidy in many areas

PUTRAJAYA: Part of the money used by the Government as subsidy is Petronas’ contribution from its annual revenue.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the national oil company did not subsidise petrol at the pump but gave the Government part of its revenue to be put into a consolidated fund.

“It is money from the fund that the Government is using to subsidise petrol, agriculture, education, welfare, and now food. We give all these aids with the help of Petronas.

“Ever since the fuel price increase was announced, people have been demanding to know why Petronas is not helping out. What they don’t know is that the company has been helping out all this while.

“The Government, on the other hand, pays from its coffers to petrol companies as fuel subsidy.

Tracking the system: Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad arriving at the Express Rail Link station in Putrajaya yesterday, the second day he was trying public transport from his home in Jalan Tunku in Kuala Lumpur to his office in Putrajaya. His verdict after two days? “It’s not so convenient since there is no bus connection from my house to KL Sentral to take the ERL to Putrajaya. My wife has to send me to KL Sentral and my driver picks me up in Putrajaya. He will be bringing the matter up in the Cabinet today. Shahrir is a frequent user of ERL to KLIA.

This is also being enjoyed by Petronas,” Shahrir told reporters after attending his first monthly gathering with the ministry’s staff since his appointment as the minister.

He said the public needed to understand the situation so that there would no longer be accusations that the company was not using its billions of ringgit in revenue to help people.

“Petronas is helping out. Let me assure you of that,” he said, adding that it was important to lift or reduce subsidy so as to discourage wastage and to give higher value to the assets or commodity.

“I am of the opinion the public is not appreciative of the value of goods because they need not pay the actual price. Subsidy has led to wastage. Now, with lesser subsidy, people will tend to be more careful about how they use goods like petrol because they have to pay more.”