Where is Sabah’s oil money going?

KOTA KINABALU: Sabah, as major gas producing state in the country, should not be included in the electricity tariff hike or in any fuel susbidy cuts.

Sabah Progressive Party (SAPP) women’s wing chief Melanie Chia said yesterday that there “is no reason to revise electricity tariff in Sabah, more so when Sabah is a major producer of gas in the country”.

Chia, who is the state assembly representative for Luyang, questioned the logic behind the increase, citing that being a net exporter of crude oil, the government was supposed to be making a huge profit each time there is an increase in the oil prices in the global market.

“The government has repeatedly said that they need to review the subsidies because of the increase in the prices of oil and gas.

“But it has been reported that every time the price of oil and gas increased by US$1, there is an additional income of RM500 million.

“The US$1 increase will increase the subsidy by RM350 million, there is still a net excess of RM150 million.

“So, where has this excess gone to?

“By this calculation, the recent increases in the prices of oil and gas should have brought about a win-win situation to the government and the people of Malaysia.

“If the government has to cry foul each time the price increases, we need to ask the government where has the excess due to the higher prices of our natural resources gone to?

“Instead of a win-win accruing from our natural endowment, we are burdened with the eventuality of higher cost of living.

“Where is the logic?” she asked.

Why a refinery in Johor?

SAPP is also demanding accountability and transparency in the dealings of Petronas since Sabah is a major producer of oil and gas in the country, but is not represented in the advisory board of national oil company.

“Before our natural endowment in oil and gas is depleted, the Malaysians living in Sabah need to be assured that Sabah will benefit from the exploitation of the oil and gas here.

“Sabah and companies in Sabah should be direct beneficiaries from the oil and gas industry development,” Chia said.

She also queried the siting of a Refinery and Petrochemicals Integrated Development (RAPID) Complex in Johor when the state has no gas or oil fields.

The complex is earmarked to produce chemicals and 300,000 barrels per day of refined crude oil.

Chia was commenting on the statement by the managing director of Sabah Electricity Sdn Bhd (SESB), Baharin Din, that SESB is currently waiting for the government announcement on any increase in electricity tariff in Sabah.

The federal government’s recent announcement of hike in electricity tariff by the Tenaga Nasional Bhd (TNB) starting on June 1, is expected to cause prices of already comparatively expensive goods and services in Sabah to skyrocket. - FMT