Malaysia blogger taiko cum MP, Jeffooi reveal the truth of the oil hikes.
Apparently, there is a UNTOUCHABLE group that continue to ride on HUGE subsidies oil – the Independent Power Provider(IPP).
Jeff Ooi point out
If the Abdullah Administration thought it right in removing fuel subsidies meant for the business and individual consumers, then it should do the same to remove indirect but guaranteed subsidies to the Independent Power Producers (IPPs).Under the lopsided terms of the Power Production Agreements (PPAs), the IPPs are shielded from the rising cost of fuel.
The five first generation IPPs all use natural gas as their feedstock and PETRONAS sells gas to the IPPs at RM6.40 per million British Thermal Units (mmBTU).
That pales in comparison with the current market price of around RM35/mmBTU.
PETRONAS has paid out RM58.2 billion in gas subsidies since 1997, out of which, RM26.7 billion has gone into the pockets of the IPPs.
This is obscene sin.
No mainstream newspaper dare to talk about IPP. Because conglomerate like YTL are big customer to them. And how YTL growth to such size must thanks to Mahathir, which allowed the corrupted EPU that give FREE money to IPP.