TUARAN: Pakatan Harapan-led government is committed to fulfil its promises on the issue of oil royalty to oil producing states, said Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.
She said she would refer the matter to the Prime Minister Tun Dr Mahathir Mohamad for further discussion.
“We are committed in this (royalty) matter and there will be no U-turn because that is our promise (in the election).
“Although we are committed, we also need to look at the nation’s current situation,” she told reporters after launching the Stop Pornography seminar at the Kent Teachers’ Training Campus here today.
Wan Azizah was commenting on Dr Mahathir’s recent statement that the payment of 20 per cent oil royalty to state government was subject to profit earned by producing companies operating in respective waters.
The Prime Minister was reported to have said the amount of royalty to each state government was different as it relied on profit from operations at each location.
In its manifesto in the 14th General Election, PH promised to increase 20 per cent oil royalty to all petroleum producing states - Sabah, Sarawak, Kelantan, and Terengganu.
This raises the question whether the state government will receive 20 per cent royalty based on income and not profit.
Yesterday, Sarawak Chief Minister Datuk Patinggi Abang Johari Abang Openg said the state government was seeking further clarification on the Central Government’s decision in the provision of 20 per cent of oil and gas profits.