KOTA KINABALU: Former federal minister Datuk Seri Idris Jala has proposed the formation of a national oil royalty council involving the Prime Minister, Sarawak Premier, Sabah Chief Minister, and Petronas to ensure fairer royalty distribution while sustaining Petronas operations.
Idris suggested the council assess Petronas’ annual operating and capital expenditure needs, allowing remaining profits to be shared with Sabah and Sarawak, The Borneo Post reported.
Royalties could vary with oil prices, ranging from 10 percent at low prices to 20 percent at high prices.
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Idris also recommended reinstating the GST to reduce reliance on Petronas for federal revenue.
