GIVEN the astronomic rise in fuel prices due to the war in Irsnt and the restrictions in the Strait of Hormuz, I have recommended that earnings from national oil corporation PETRONAS be used to subsidise the consumer burden of fuel prices, namely petroleum and diesel.
Of late, petrol and diesel prices have skyrocketed, thus belittling the government’s efforts in subsidising fuel prices. It is noted that 50% of Malaysia’s oil imports to pass through the Strait of Hormuz.
PETRONAS might export crude petroleum and liquefied natural gas (LNG) but the revenue is not sufficient to cover the import of refined fuel.
Some individuals in the Pakatan Harapan (PH) coalition took exception to my suggestion that the government should use the earnings of PETRONAS to cover the expenditure on subsidies.
These individuals argued that the profits of PETRONAS have fallen over the years and that the use of its earnings to cover the cost of fuel subsidies might not be a wise move.
‘PETRONAS only accountable to PMX’
A DAP lawmaker (Kampar MP Chong Zhemin) even called my suggestion untenable and irresponsible.
He contended that the use of PETRONAS earnings should be the last resort and that the country should follow the example of Norway where earnings from the oil & gas (O&G) industry are invested in long-term strategic investments.
My recommendation for the government to use PETRONAS earnings was neither a short-term nor a long-term strategy but merely to arrest the rapid escalation in fuel prices.
PETRONAS might be a national company with profits after tax amounting to more than RM30 bil.
Although its profits might have gradually fallen over the years, PETRONAS still makes substantial profits. While PETRONAS is a national company, it is not accountable to the public or to Parliament but only to the Prime Minister Datuk Seri Anwar Ibrahim.
Given its status as a non-accountable to the public entity, MPs of the Madani government are hardly in a position to have a holistic perspective on PETRONAS.
Viable stance
Oil & gas (O&G) companies in other countries might be accountable to the public, hence it might be relevant to talk about strategic long-term investments from the perspective of public interest.
Anyway, I defend my argument that the earnings from PETRONAS should be used to cover fuel subsidies in light of the price increases.
At the moment, the government spends about RM3.2 bil on fuel subsidies which is a fraction of the more than RM30 bil profit earned by PETRONAS.
Setting aside RM5 bil to RM6 bil from the earnings of PETRONAS might lift the burden of fuel prices from consumers.
Malaysia’s dependence on hydrocarbon revenue and the lack of a well-managed public transport system seem to go along with the heavy reliance on imported fuel for domestic consumption.
Maybe the gung-ho Madani MPs should not be talking about PETRONAS’ long-term investments but rather how the country could reduce its environmentally hazardous dependence on hydrocarbon fuel and the need to establish a proper public transport system.
By the way, are there any proposals from DAP MPs to render PETRONAS answerable to Parliament rather than only to the PM?
Should the PH-led government MPs talk about institutional reforms first before entertaining the thought of long-term investment strategies of PETRONAS? – March 24, 2026
Former DAP stalwart and Penang deputy chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
