THE Democratic Action Party has proposed a RM50 billion expansionary budget which, party leader Lim Guan Eng said, would enable Malaysians to receive a RM6,000 annual oil bonus for families earning less than RM6,000 and an immediate reduction in petrol prices as well as electricity tariffs.

What annual oil bonus is he referring to?

The global price of oil has dropped drastically to around US$53 (RM192) a barrel. And the price of fuel at the pump has been reduced by the government.

It was recently reported in the Saudi Gazette that for the oil companies to break even, the price of oil needs to be between US$50 and US$55 per barrel.

The Saudi king was reported to have said that a “fair” price of oil should be US$75 per barrel.

At current oil prices, Petronas will have less revenue, make less profit and contribute less to the government.

Lim wants to give away RM6,000 per family.

A large majority of families earn less than RM6,000 per month and, thus, they would all be eligible.

This would mean a large sum of money has to be given out as “annual oil bonus”.

And Lim is probably thinking that this is to be plundered from Petronas’ funds.

How does this money help to have a “high-impact” effect on the economy?

ADRI HEMY ADBUL GHANI, Jeddah, Saudi Arabia

Source: NST – December 3, 2008