Financial Pearls
Now this one, my friends, is the tale of petrol prices. Well our finance minister...oh no...i told a lie...our ex-finance minister (he is now defense minister) taught me a thing or two about running the country..honestly, cross my heart, I learnt a lot from his endless wisdom.
June 4th 2008
The government decided to increase petrol prices by a whooping 78 cents, the reason is pretty valid...with rising global prices of petrol reaching unprecedented heights, our government subsidy bill has reached unbearable peak. So fair enough, a new system was enacted...with the government keeping the max subsidy of 30 cents regardless of price
It is justified of course by comparing our prices to non-crude oil producing nations, even though we still are a net exporting nation. Even though with inflated global petrol prices we should be raking in the cash to start with? No no...No no...apparently, Petronas can only subsidize so much...the rest of the earnings...I dunno....we "invest" it in something else, you know, because the welfare of the nation is not as important as investment...
Ok...the nation grumbled and moaned, price of everything from electricity to teh tarik increased...busineses shut down, broke people become broker....
fast forward to 17th September 2008
With the tumbling global economy, crude oil prices are tumbling to record lows...woohoo! The nation should expect lowering prices since you know, with how far the price gone down the government might not even have to subsidize the 30 cents as we might be paying equal rate as the market rate kan?
This is what our PM comment about the global crude oil prices
"On the oil price drop in the world market, Abdullah said it was good but Petronas’ revenue would drop as well as the subsidy (from petronas)." -The star, Wed 17 sept 2008
damnit...I realize...our nation just can't win. Minyak naik kita rugi, minyak turun pun kita rugi...
Financial advice of the day: 1+1 does not equal 2