I love it when the government start talking in numbers. This is because, Maths never lie. Take a look at the figures quoted below in bold.
Yes, we export crude petroleum, says the president and chief executive officer of Petronas, Tan Sri Hassan Marican. In 2007, Malaysia extracted about 600,000 barrels per day, of which 339,000 barrels per day were refined here. The remainder was exported unprocessed, making us a net exporter of crude.
On the other hand, notes Minister for Domestic Trade and Consumer Affairs Datuk Shahrir Samad, Malaysia is a net importer of refined petrol.
We produced 110,000 barrels of refined petrol per day last year but the demand was 190,000 barrels per day.
The balance had to be imported – 29 million barrels for the whole year.
At RM43 billion last year, Shahrir notes, fuel subsidies consumed about a quarter of the RM164 billion operating and development expenditure.
Let us do some number crunching.
1 barrel = 159 litres (Read here)
190,000 barrels per day = 30,210,000 litres per day
1 year = 30,210,000 x 365 = 11,026,650,000 litres
Subsidy in 2007 (last year) = RM0.19 per litre, (quoted from table)
So total subsidy = 11,026,650,000 x RM0.19 = RM2,095,063,500
= RM2 billion??
Hmm.. probably petrol subsidy and diesel subsidy should be added together.
Subsidy in 2007 RM0.19 + RM0.43 = 0.62 per litre,
So total subsidy = 11,026,650,000 x RM0.62 = RM6,836,523,000
= RM6 billion??
Using the numbers given by Shahrir Samad, I can’t get RM43 billion fuel subsidies from all the calculation I did!! WHY? I probably sucks at Maths. Can you help me here? How to get at RM43 billion? Find, get me RM35B. Oh, I think RM30B is enough. Please? I need to go to sleep now..
ps: I actually made a mistake of using 190,000 barrels per day demand to calculate the subsidy, when I probably should use the 29 millions barrels per year that need to be imported for calculation. Well, why the government need to subsidise what we can produce locally right? Then the subsidy for fuel is just 29 millions x 159 litres x RM0.62 = RM2 billion. This is not making any F sense!
pss: I will be glad if somebody points out I made a mistake in my calculation. Please. Then we will know where the rest of the billions went to..