KUALA LUMPUR - MALAYSIA'S state energy firm Petronas is pushing for gas prices to be hiked, after paying out subsidies worth 50 billion ringgit (S$21.7 billion) over the past decade, a report said on Tuesday.
Fuel costs are a touchy subject in Malaysia, after a series of petrol price increases triggered widespread anger, and the government has repeatedly said it will keep fuel at existing levels despite surging global oil prices.
However, the Sunday Star quoted Energy Minister Lim Keng Yaik as saying the government will review Petronas's proposal next Monday.
'Petronas is screaming for an increase,' he told the daily, adding that it paid out 14 billion ringgit in subsidies last year alone.
'How can they continue to subsidise the prices for the imported gas? It is beyond them. We cannot control global prices, it is not our doing,' he said.
Deputy Prime Minister Najib Razak also signalled that a gas price hike could be on the cards, while reiterating that petrol prices would remain at current levels despite oil hitting US$80 a barrel last week.
'Whatever we promised, we will honour our commitment for the price of petrol... gas is another issue,' he said according to the official Bernama news agency.
Mr Lim reportedly gave assurances that although Malaysian power producers rely heavily on gas, there would be no increase in electricity tariffs.
'We just increased power tariffs in June last year. Although the pressure to increase tariffs is getting greater, there will not be another increase any time soon,' he said.
Malaysia imposed its highest-ever fuel price rises in February last year, citing rising oil prices, and pledged to use the cost savings to boost the country's mediocre transport system.
Following the unpopular sharp hike, political and civil groups organised rare demonstrations in the streets of the capital Kuala Lumpur to condemn the decision since Malaysia is a net exporter of oil. -- AFP
