The Star Online : Positive news on oil royalty
KUALA TERENGGANU 7 June 2008 : Terengganu folks can expect positive news on the oil royalty issue, says Mentri Besar Datuk Ahmad Said after his meeting with the Prime Minister recently.
Without elaborating, Ahmad said Datuk Seri Abdullah Ahmad Badawi had indicated that he would not disappoint the people of Terengganu.
“I am confident that the Federal Government will do something about this issue, but for now, we will just have to wait for a decision to be announced,” Ahmad said here yesterday.
The state government has requested the Federal Government to hand over the oil royalty to the state for development programmes.
The Federal Government, on Sept 5, 2000, had replaced the 5% oil royalty payment to the state with the “Wang Ehsan” scheme. The decision was made by the Finance Ministry when Terengganu was governed by PAS.
The “Wang Ehsan” funds were channelled directly for development projects, bypassing the state’s treasury.
On the fuel price hike, Ahmad said people had lived in a comfort zone for long, and the price increase would teach them to appreciate what the Government had done for the people by way of subsidies.
“Anyway, despite the increase, we still enjoy fuel subsidy and the fuel price is lower than in other countries,” he added.