Sarawakians take pride of the fact that their state produces one-third of the country's oil. So it is not surprising that some of them are demanding for greater fuel subsidies - not less - in the wake of the sharp increases in the price of petrol, diesel and liquid petroleum gas (LPG).

The state opposition has called for an increase in the oil royalty given by the federal government and use the money as additional subsidies to directly benefit the state's 2.5 million population.

State DAP publicity secretary David Wong was quoted in today's Borneo Post as saying that the state government should seek a doubling of the oil royalty from the present 5 percent.

But this was dismissed as "unrealistic" by Sarawak United People's Party (Supp) leader Robert Lau Hoi Chew, who is also federal local government and housing deputy minister.

He said the opposition was only capitalising on Tuesday's announcement of fuel price hike of between 18.5 percent and 23 percent because the state election was around the corner.

The deputy minister said the country's daily petroleum production is around 750,000 barrels and "the day will come when there will be not much left".

Lau added that the government wants petroleum production to benefit all Malaysians. "We cannot have the mentality that only Sarawakians should enjoy it more (than others)."

Nothing good to say

Sarawak's liquefied natural gas (LNG) plant in Bintulu is one of the largest in the world with a production capacity of 26 million cubic metres.

Based on the 5 percent royalty, oil and gas contribute about RM1 billion to the state government's revenue annually.

Oil production started in Sarawak by Shell in 1910. But as part of the resource conservation policy, oil production has reduced significantly and this come largely from off-shore production facilities. The focus now is on LNG production.

In a sampling of opinion by the local print media, almost everyone - from driver to factory worker, office clerk, teacher and junior executive - has nothing good to say about the hefty 30 sen hike in petrol and diesel prices.

Many of the state leaders have conceded that the fuel price increases would have significant impact on especially those from the low-income group, who will also have to face the inevitable increase in food and transportation cost.

State second finance minister Wong Soon Koh acknowledged the quantum of the latest increase was "a bit unexpected and too big a jump".

He said the opposition was almost certain to capitalise on the price hike as Sarawak is expected to hold its state election this year.

Another party colleague, Chan Seng Khai, the Supp state assemblyperson for Batu Lintang, argued that the hike was unavoidable because of escalating global oil prices and that the government could no longer continue to keep on subsidising fuel cost at such a high level.