No clearer explanation was given by the government on the new hike in the prices of petrol and diesel, five days before Hari Raya Aidiladha.
The announcement by the Domestic Trade, Cooperatives and Consumerism Ministry only bragged about the amount of subsidy the government still has to bear in order to offer 'cheaper' prices to consumers.
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It came without any logical economic and market-survey analysis. Too short a statement, reflective of how the mind of those working in formulating the prices are. Moreover, we are expecting a more refreshing Budget 2015 announcement by Prime Minister Najib Tun Razak about a month from now.
While Malaysia hikes up prices, some countries, including India took a drastic step to reduce it. Read here:
This has the Saudis contemplating even deeper cuts in oil production to keep prices from declining any further. The world’s biggest crude exporter told OPEC recently that in August it reduced output by more than 400,000 barrels a day.
The announcement by the Domestic Trade, Cooperatives and Consumerism Ministry only bragged about the amount of subsidy the government still has to bear in order to offer 'cheaper' prices to consumers.
The prices of petrol and diesel in Malaysia will go up on Thursday (Oct 2), as part of the government’s plan to reduce the current fuel subsidy by 20 sen (US$0.06).The who world is observing a decline in crude oil prices.
The Star Online said on Wednesday that from midnight, RON95 petrol will cost RM2.30 (US$0.67) per litre, while diesel will cost RM2.20 (US$0.70) per litre.
The Domestic Trade, Cooperatives and Consumerism Ministry added that it will implement the subsidy reduction in stages, saying it will continue providing incentives to the lower-income group to alleviate their financial burden.
According to The Sun Daily, the Malaysian government needs to spend about RM21 billion (US$6.42 billion) in fuel subsidies despite the reduction.
The Star Online said the current market price for RON95 is RM2.58 (US$0.79) per litre, while diesel is RM2.52 (US$0.77) per litre.
While Malaysia hikes up prices, some countries, including India took a drastic step to reduce it. Read here:
The price of petrol was cut by 65 paise per litre on Tuesday, while that of diesel was kept unchanged. The revised rates will be effective from midnight.
"RSP of petrol in Delhi shall decrease by Rs. 0.65/litre (including VAT), with corresponding decrease in other states," Indian Oil Corp, the country's largest fuel retailer, said in a statement.Diesel price revision was kept on hold till Prime Minister's return from the US, Press Trust of India reported. Mr Modi is on his first US visit since coming to power in May this year. This would be the first reduction in diesel prices in over five years.
The oil is in the midst of one of its steepest selloffs since the financial crisis, with prices falling 16 percent since mid-June.
It’s not yet clear how well that’s working. The Saudi cuts were offset in part by more oil from Iran, Iraq, and Nigeria—not to mention the continued record increase in U.S. oil production thanks to the shale boom. While prices are expected to rise slightly for international blends of crude over the next six months, domestic prices in the U.S. are forecast to be cheaper by next spring. That’s not necessarily great news for oil producers, but it could be good news for consumers and the global economy.
There are two schools of thought to explain the recent crash in oil prices: too little demand and too much supply. The question is which one is having the bigger influence. While the results are the same (lower oil prices), the reason for them is equally if not more important to the global economy. Demand certainly could be stronger. A stagnant economy in Europe, slower growth in China, and flat gasoline consumption in the U.S. are all tamping down prices. According to the International Energy Agency, the growth in the world’s demand for oil will be the slowest this year since 2011.
US oil prices also posted their largest drop in almost two years and the global Brent contract fell into a bear market on Tuesday after OPEC oil supplies reportedly exceeded demand.
Oil prices were also under pressure as traders squared up books with the last trading day of the month and the quarter, and on the expiration of contracts for refined fuels.
Analysts and traders said investment managers appeared to be capitulating after a rout in crude markets that has seen benchmark US prices fall 13% and the global Brent contract lose 16% in the quarter that ended Tuesday. The steep decline has come as domestic and global supplies have ballooned, with output from the US, Libya and Iraq surging to the point where the market no longer responds to usual bullish drivers such as disturbances in Eastern Europe and the Middle East.The decline in oil prices outpaced even the sharp decline in commodity markets, with the Bloomberg Commodity Index falling 12% in the same time period.
Now, where is the justification for our price hike?
Such a move will always lead to the rise in consumer items. Traders, retailers and wholesalers alike will ride on it as a lame excuse to increase the price of such items. Even 'mamak roti canai' will be moved to increase the price of 'teh tarik' and 'roti canai' by 10 sen or 20 sen.
And what about our public transport and other services?
By the way, PM is still away. Was he informed about it?
NEW DELHI: State oil firms have slashed petrol prices by 65 paise per litre from Wednesday because of falling international oil prices, which may also brighten ruling BJP's prospects in Maharashtra and Haryana assembly elections.
This is the fourth consecutive reduction in petrol prices in last two months leading to a total Rs 5.74 per litre drop in its rate in Delhi. "Petrol prices have been reduced by about 54 paise per litre on all India basis, but the pump prices of petrol will diff ..
This is the fourth consecutive reduction in petrol prices in last two months leading to a total Rs 5.74 per litre drop in its rate in Delhi. "Petrol prices have been reduced by about 54 paise per litre on all India basis, but the pump prices of petrol will diff ..