With government-owned national oil company Petronas recording after-tax profits of RM35.6 billion, there is no justification for the government to burden the people with another oil price-hike.

It was widely reported today that the national petroleum company's revenue had escalated from RM97.5 billion to RM136 billion - a 50 percent jump in profit.

The 33 percent increase in global oil price from US$45 will increase Petronas' profits by at least another RM12 billion, while the government, which has received RM31.2 billion, is expected to rake in another RM800 million by financial year end.

DAP secretary-general Lim Guan Eng said it was "unethical" and "against the national interest for Petronas to record huge profits whilst Malaysian consumers have to suffer high fuel prices."

"Such a policy violates the basic principle that oil reserves belongs not to Petronas but to the people of Malaysia.

"Furthermore, even if the government refuses to bear the burden then it should direct Petronas to do so because Petronas with its huge record profits of RM35.6 billion can afford to do so," added Lim, who is an accountant by training.

The price of petrol was increased by a hefty 10 sen per litre and diesel by 20 sen per litre on May 4. The 7 percent (for petrol) to 23 percent (for diesel) increase was the sharpest hike in oil prices in recent years.

Motorists panic

Lim was commenting on rumours circulating among the public that there was an impending oil price hike of between 10 to 20 sen, following which motorists in Kuala Lumpur queued up at petrol stations to fill up their tanks.

These rumors were, however, quashed by premier Abdullah Ahmad Badawi, who yesterday said the Cabinet Committee to Study the Impact of Rising Oil Prices on the Economy had yet to even meet and decide on the matter.

Bernama today reported Abdullah has having again called on the people to stop spreading rumours about hikes in the prices of petrol and diesel.

"Why do it? If the government makes a decision we will announce it and explain to the people and the people will know what's happening," the prime minister said in the report.

Asked to comment on Petronas's net profit of RM58.03 billion, Abdullah said, "Thank God, we made a big profit because of the oil price increase but the subsidies were also big."

Despite the price hike in May, the government is still paying RM6.7 billion in subsidies, about RM1.9 billion more than it had paid in 2004.

However, with the price increase, the government is expected to save RM2.2 billion in subsidies this year.