Brunei's B$202 Million Subsidy

What Is Foregone For The $202mil Subsidy
By Za'im Zaini

Bandar Seri Begawan - A total of 2,880 units of low-cost housing, 20 health centres, 12 schools, 170km of new roads, 100,000 new computers for schools and 1,400 scholarships for students on a first degrees course overseas.

That is the estimate the government could have spent on instead of the $202 million that the government pays in subsidies for gasoline and diesel (2007 stats). This was among what was revealed in a pamphlet distributed yesterday during the Subsidy Awareness Campaign launched at the Gadong petrol station. Present M guest of honour was Pehin Orang Kaya Seri Utama Dato Seri Setia Awang Haji Yahya Minister of Energy at the Prime Minister's Office.

The event began with a welcoming speech from Hj Zolkiflee Hj Abdul Karim, Acting Director for Petroleum Unit. This was followed by the minister launching the awareness campaign by distribution of pamphlets and an informative poster.

The pamphlet also reveals that the amount $202 million in subsidies for gasoline and diesel is the highest figure paid by the government ever since the introduction of subsidies in 1978.

The subsidies paid for 2007 on premium 97 gasoline per litre is $0.3293, super 92 is $0.3207 per litre, regular $0.4127 and diesel $0.4990.

At the moment according to current market price, subsidies paid on premium 97 gasoline per litre is $0.49, super 92 is $0.48 per litre, regular $0.55 per litre and diesel $0.67 per litre.

Gasoline remains the highest in petroleum products used as in 2007 with over 250 million litres while in 2006 it was more than 300 million litres. Diesel use last year was less than 250 million litres usage and slightly above 200 million litres.

Brunei's price for gasoline is the lowest priced in the region per litre at a rate of $0.53 per litre as well as diesel at $0.31 per litre.

Thus, the public is urged to plan their journeys more wisely, use the bicycle or are encouraged to walk, to slow down, to make sure the car engine is in good condition — to name a few of the tips given.

The campaign is to inform the public on the price difference between subsidy and commercial, amount of government subsidy and also practical tips on how to save on gasoline and diesel usage. -- Courtesy of Borneo Bulletin

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B$16.8 million for one school

B$10 million for one health centre
B$1.1 million per km of road
B$144,000 for an overseas degree
B$70,000 each for a perpindahan house
B$2,020 for a computer

One wonders how much does the government spent on rentals to house public servants? It must run into millions of dollars as well. If these are taken into account as well, am sure that the government can save a lot of money.

But while saving money is most important, one do wonder that if the savings are made, will the money actually go to build or pay for the infrastructure? Why then do you hear that contractors are not paid on time? I remembered hearing that the cleaners in govt institutions were not even paid on time, and mind you, how much do these people actually earn? Sigh... so many things to "clean up" before all those saving will really benefit the whole society.