Petronas chief says domestic fuel subsidies unsustainable

Hassan Marican, president and CEO of Malaysia’s national oil company Petroliam Nasional Bhd (Petronas), has warned that fuel subsidies in the country are unsustainable over the long term, Bernama news agency reported. Amid the current skyrocketing global oil prices, fuel subsidies were no longer efficient in correcting the economic imbalances they were meant to address, Hassan was quoted as saying. There will come a time when our country cannot subsidize so many things,” he said. Since 1997, it has spent close to RM50 billion (US$14.8 billion) in oil and gas subsidies. Subsidies through 2007 are expected to set Petronas back by RM35 billion (US$10.4 billion). (September 19, 2007)