Malaysia's Petronas urges end to energy subsidies

0 Comments | AFP, June, 2008

KUALA LUMPUR (AFP) — Malaysian state energy firm Petronas said on Monday that subsidies which cause excessive consumption and distort markets must be removed.

Amid the fallout from a 41 percent fuel price hike in Malaysia last week, Petronas president and CEO Hassan Marican said that while the industry was trying to step up production, Asia must become more energy-efficient.

"While this is being pursued, nations must also work towards a gradual removal of generous energy subsidies, which cause unmitigated consumption and market distortions that are unmanageable in the long run," he said.

"Saving energy is no longer about achieving cost savings -- it is a matter of survival and providing for the future generation," Hassan told the annual Asia Oil and Gas...