What garbage!

BolehGeneral, February 19, 2008

Side notes |

By Zorro

This from our Prime Minister: (bold, my 2 cents take)

“Please trust us – we are your government. (Not for long we pray.)If you look at the economy, we are doing well. That is a fact proven by figures.(4th floor figures?)But people still claim otherwise because of increasing prices. (which will jettison after elections, unless BN is ousted).This is a very simplistic way of analysing the economy. (Simpleton’s way or simplistic way?)

“Nobody is happy to see prices rising (Stop fibbing…Petronas oil barons, not happy?) but this is out of our control(so says you). The question is not how to bring down prices but how to help the rakyat cope. (with pre-election freebies ? Najib says 40,000 houses will be built….WILL BE….if BN wins?)

“Every country in the world is faced with rising oil prices except maybe Brunei (scroll down and we prove you wrong)but you cannot compare (then on what basis can we compare). The RM40bil oil subsidy we give out can be used to build better schools, roads, hospitals and infrastructure (like all your corridors ….whilst corridors of poverty fringe all states in the country) but we don’t want to burden the people,”(but you burdened us when you give “soft loans” to resuscitate failed projects by your government people) he said, adding that education and medical treatment was also heavily subsidised by the Government.(that my dear PM is the duty of any elected government….so stop bringing this up during election time!)

“We subsidise even water and electricity, yet people are angry when they hear the word ‘toll’. We try to subsidise as much as possible but we still need to impose toll charges because we need to build roads,” (why dont you put aside the OSA and reveal to us how much the concessioners are making….if you have nothing to hide…..we protest because you cannot come clean with this revelation.)

Anyway, here is some bedtime reading for the very hard working PM:

Prices of oil around the world (by litres and USD):

Norway (6.82); London (5.96); Rome (5.80); Brussels (6.16); Hong Kong (6.25); Japan(5.25); Brazil(4.42); Buenos Aires (2.03); Mexico City (2.22);Sydney (3.42); Johannesburg (3.39); New Delhi (3.71)……and here is the SHOCKER!!!!!

CARACAS (O.12)
KUWAIT (0.78)
RIYADH (0.91)

Let us do some simple calculation here. [below measurement is taken from internet metric converter, so no doubt on the figure given]
1 Barrel = 158.98756 Liters
1 Barrel = RM 217.62 (as at today, 1 barrel is USD62 & 1USD=RM3.51)
1 Liter = RM 1.36878
In Malaysia 1 Liter = RM1.92 & government call this as SUBSIDY ??? !!!!

The fact is we are subsidizing the government for RM0.55 per liter!!!!!

SHOULD ANYONE FEEL THAT THESE FIGURES ARE PLUCKED FROM THE BRIGHT MALAYSIAN SKY, I STAND CORRECTED.
BUT THE BIG QUESTION IS: WHO IS SUBSIDIZING WHOM?

19 hours ago AP reported:

Light, sweet crude for March delivery rose 40 cents to $95.90 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

The Nymex crude contract rose 4 cents Friday to settle at $95.50 a barrel after alternating frequently between positive and negative territory. Oil prices have risen more than $8 in little more than a week.

Comments

One Response to “What garbage!”

  1. gier on February 20th, 2008 4:33 pm

    Um, on the petrol thing …

    Venezuela (where Caracas is) cannot be a representative example, mainly because Chavez has been having a dick fight with the US for so long, and had nationalised the oil companies there. It is probably reasonable to assume that the petrol there is very heavily subsidised.

    As for Kuwait and Riyadh, again, one has to assume that the petrol there is also subsidised.

    I’m no expert either, but I think your calculations are a tad bit too simplistic. The price of *crude* oil a barrel cannot be equated to the price of refined petrol. Taking into account the cost of transport, refining, ekcetera, it’s reasonable to assume that the cost of 1 litre of petrol would be more than 1 litre of crude oil.

    As such, it is also reasonable to assume that the petrol in Malaysia *is* being subsidised though one can argue about the quantum of the subsidy.

    With regards to Petronas making money hand over fist, while the people are saddled with high fuel prices — again, it is too simplistic to draw a straight line cause and effect. But that’s another story altogether.

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