Over the past 31 years since Petronas was formed, the national oil company has earned profits and contributed to the government coffers up to RM500 billion. What has happened to the money?

That is what DAP secretary-general Lim Guan Eng wants to know.

"A good question to ask is whether the people have enjoyed a share of this RM500 billion profits or that only a small number of top leaders who practiced cronyism, corruption and rent-seeking are the real benefactors," said Lim, who is an accountant by training.

He expressed worry that the RM4.4 billion savings from the sharp fuel price hike - announced by the government on Tuesday - would only benefit non-performing government-linked companies, such as the ailing Malaysia Airlines, more than ordinary Malaysians.

"This is reflected in the 9 point drop in the KLSE Composite Index since the fuel price hike was announced two days ago as compared to generally stronger performances by other regional share markets," he added.

MAS, which made a record loss of RM1.3 billion last year, would need RM4 billion for its turnaround plan, of which RM2 billion is expected to come from the government.

While Lim acknowledged there were compelling reasons for the removal of the oil subsidies, he argued that the burden and benefits from the fuel hike should be equally shared amongst all Malaysians.

"Removal of subsidies prevents market distortion in the actual prices of our products, improve efficiency, cut down losses due smuggling of our cheaper fuel overseas as well as forces the economy to be more competitive and Malaysian workers more productive.

"However, such removal of subsidies carries a large social cost to the poor."

To alleviate the high cost of living faced by the people, especially wage earners and lower-income groups, he suggested that Petronas' huge profits of RM35.5 billion in last year alone should be shared with Malaysians.

What about previous savings?

According to the opposition leader, the state-owned company profits from its oil exports - which is RM35.5 billion for the 2004-2005 financial year - would allow "every Malaysian to take home at least RM1,500 per annum".

"(However) instead of giving to every Malaysian, such profits should be given only to the needy ones. This RM35.5 billion in profits does not include the RM31.2 billion paid to the government in the form of taxes, duties and royalty payments. The RM31.2 billion can be used by the government to fund Petronas investment requirements."

Petronas chief Mohd Hassan Merican had predicted that Malaysia would be a net oil importer in four years after our reserves begin to dry up.

"If oil runs out by 2010, there is greater urgency to let fuel price to find its real market level of RM2.46 per liter so that we are prepared for the day when we have to import our oil needs at US$65 per barrel.

"The time has come for 25 million Malaysians to benefit directly from this oil revenue. We have been denied our rightful share for the last 31 years and it is only fair that Malaysians can partake in the final four years left in oil revenues before we become an oil importer."

Lim also asked what had happened to the savings which the government had made after hiking fuel prices in the past two years where petrol prices had gone up by 40 percent while diesel by 102 percent.

"The people did not see any benefit from development projects or improvement in public transport," he lamented.

Shrouded in secrecy

Meanwhile, human rights group Suaram complained that the accounts of Petronas had been "shrouded in secrecy".

It called on Prime Minister Abdullah Ahmad Badawi to open Petronas' books for public scrutiny as part of his campaign for transparency in government.

"Without transparency and accountability in Petronas, and based on the track record of Petronas, it would seem that Petronas is only benefiting the rich while gaining from the rest of us," said Suaram executive director Yap Swee Seng.

He said that billions of ringgit from Petronas has been used by the government to bail out ailing companies of its cronies and built white-elephant projects, such as the Formula 1 circuit and the country's new administrative capital, Putrajaya.

"(This) only benefited the rich and famous, and a small group of cronies close to the government that have easy access to these mega-projects. Clearly, the fund of Petronas has not benefited the people at large, and the fuel price hike will further exacerbate the gap between the rich and the poor."