PM clarifies that 20% oil royalty will come from profits, not revenue
KUALA LUMPUR (July 20): The 20% oil royalty recently promised by the Pakatan Harapan (PH) federal government to oil-producing states will be based on profits and not revenue, confirmed Prime Minister Tun Dr Mahathir Mohamad today.
“[The 20% oil royalty] will be based on profit made by Petronas in the [state’s] area. What we collect in Terengganu will not be paid to Sarawak or Sabah,” Dr Mahathir said at a press conference today.
This was in contrast to the Pakatan Harapan manifesto for the 14th General Election.