Petrol and Diesel Price Hike Coming Soon !!!

Last week, after a short trip home, was invited to have a cup of coffee with a YB.

Mr YB started with his stories about his constituent and how busy he was.

Anyway my main obective was to have him listen to my idea on NGV. I hope that with the imput I have he might open his mind to bring the issue to the cabinet.

" YB, as you know the cost of crude oil is about to touch US 100 per barrel. Once it crosses that it will start to move towards US 200 per barrel".

" There is no way the Country can continue bearing the subsidies to both the Industries and the Public". " We have crossed RM18 billion and if things continue skyrocketing, we might be touching RM30 billions in Petroleum subsidies".

" Assuming our PM announced that he have little choice but to increase both the Petrol and Diesel to let say by 30% (about 50 sen a liter for RON 97), do we have an alternative to give the public to use other then Petrol?"

" The best is for the Goverment to push the use of NGV as the best alternative. If they cannot bare to pay heavy petrol price give them an suitable Alternative."

" You are well awared that the cabinet have passed a bill fixing NGV price at 50% of RON 97, so if Ron 97 goes up to 1.98 + 50 = RM2.48 the NGV price will be half of it i.e. RM 1.24."

" Yes give the public an alternative and let them decide which direction to go."

Harry, what about NGV? Do we have enought?

" YB the right answer is with Petronas. If there is no gas, how the hell they went up to China and sign a contract worth RM92 billion recently?"

" YB do U remember about that day when I had a conversation with a senior Petronas guy on my phone loud speaker and what did he said on that issue? We have enought gas to produce to sustain from now till U die and have a new life and die again and another new life."

"The issue is the cost that U are willing to pay. If the price is right we can provide U the gas." That was his conclusion.

" Right now Petronas is loosing US 1 million to every Independent Power Producer. They are not willing to supply to any new users if the price is not right."

But YB that was a silly issue for not allowing the Raakyat not to use NGV as an alternative. Petronas/Government have to sort out their problems with those IPP but they must not use that as an excuse not to help the Raakyat?

Okay if there is no subsidy, what is the cost per liter?

" One Petronas Guy indicated that the price is around RM 1.35 per liter. Now we are paying RM0.68 sen a liter. Those IPPs are paying around RM 0.21 sen a liter."

" If our PM announce the price increament I am sure what ever prive he announce will not be enought to cover the subsidies. Let say he maintain the same subsidies of RM 1.01 per liter, even the price of RON 97 is hiked to RM 2.48, the cost of NGV per liter is within the rage of zero subsidies i.e RM1.24 per liter. Only .11 sen as compared to 1.01 on Ron 97"

Now let us look at our target of getting 1 million vehicles to use NGV, the cost saving looks like 1.01 - .11 =.90 sen a liter. Every liter they can cover 10 kilometers. If each car travelled a total of 20,000 kilometer a year, the saving is 1mill X 20,000/10 X .90 = 1.8 billion.

That is a very good saving. At the same time every NGV user save half of their monthly petrol bill.

So it is a win win situation.

Why can't we get the Government to instruct Petronas to allow 5% of the natural gas to be used as NGV to the Rakyaat? Look at it as a ZAKAT.

Those natural resources belong to all of us and we elected Barisan to manage the asset. Now we are asking just 5%.

Let Petronas sell 95% of these natural Gas.

Are we asking for too much? If they cannot give 5% , give us 3%.

We understand that our reserve is getting lesser and it might last for the nest 35 years. But YB, the life of our natural resources does not depend on foreign people it is us who control them. If we look at China, they refuse to use their natural gas but prefer to import. They will only use them when they have no more sellers.

YB, Petronas is in a very powerful position to get any oil or gas fields located in a friendly Islamic country. Due to our PM being OIC head, every time Petronas people visited their office, a red carpet is laid and the best oil and gas fields are given to Petronas.

I was make to understand that, Saddam Hussein offerred Petronas an oil field that is so big that it can produce the same amount of oil produce by all the field in Malaysia combined.

In Iran, we Malaysian are only given the best Gas or oil fields to be develop.

Since we have this sweet spots with all the Islamic countries, we should not be worried the life span of our oil and gas field but how can we monopolies the opportunities given to us and at the same time share the cake with the Rakyat.

So YB, I hope U can try your utmost best to voice this issue in the cabinet and see if some one will listen to Rakyaat feeling.

Thank U