If PETRONAS BANKRUPT?

Price hike has become the main issue exploited by opposition to influence the voters in the 12th general election. Opposition even promises to reduce oil prices if given the opportunity to govern.

Anwar Ibrahim told voters in his campaign rallies that "after we win on March 8, I will reduce the price of petrol."

"Who says petrol price cannot be reduced. I was finance minister for eight years, I never raised petrol price."

"I don't see why we have to raise petrol price when we are a net petroleum exporter, and when we earn over RM100 billion from oil export. What is wrong with using this income to subsidize petrol to help poor?"

The questions remain: Is it possible to reduce the price of petrol if opposition given the opportunity to govern? Why should vote for Barisan Nasional? Can the opposition manage any better than BN?

But it is important to remember that our oil supplies are limited and not likely to shield us for more than a decade into the future. Let’s see the reasional given by BN-led government.

1. Fuel subsidies by PETRONAS total some RM48.3 billion for the year 2007 which is 66% from the net profit of the company.

2. PETRONAS subsidy to maintain gas prices has been costly which amounted to RM58.2 billion from 1997 to Mac 2007and RM15.6 billion for the year 2006.

3. PETRONAS only supply 42% of oil to our oil market, whereas the other 58% are supply by Shell, EXXON, MOBILE, BHP and Chevron, so is it fare for PETRONAS to bear the subsidy of the foreign company?

4. PETRONAS main revenue is derived from the investment in foreign countries.

5. PETRONAS has four subsidiaries listed on the Bursa Malaysia and has ventured globally into more than 33 countries worldwide.

6. University Technology PETRONAS was set up by PETRONAS. PETRONAS, through its Education Sponsorship Unit (ESU) is one of the pioneering providers of sponsorship for higher education. It was set up to complement the nation's effort in developing its technical and professional manpower in its pursuit of economic development. Other PETRONAS projects included Institute Technology Petroleum, Petrosains, KLCC, KLCC recreation Center, East coast Economy Corridor and Elite Formula 1.