Much already done to keep prices low

Higher world oil prices do translate into higher profits for Petronas. But the fact is, a significant portion of these profits is already being used to support petrol product prices at current levels.

Due to the tripling of world crude oil prices, prices of petrol products could not be maintained at current low levels without the higher contribution from Petronas’ profits. In 2006, direct government subsidies paid for 31% the market price of every litre of petrol sold at the pump. But now, direct government subsidies pay for 37% of every litre of petrol.

Petronas’ contribution to government accounts for more than a third of the federal government’s revenues. This amount is not only used to fund growing subsidies, it also funds the provision and upgrading of essential services such as education and healthcare.