Oil price hike in malaysia 2008

Oil prices, though has been cut a few times over the last few months of in line with the drop in global oil prices, were still higher than the pre-crisis levels.

By all accounts the Government is flushed with money. The response has been protests around the globe, from strikes by unionised drivers and oil workers in South Korea to a rash of protest convoys and blockades by lorry drivers, fishermen and taxi drivers across Latin America, the Mediterranean and Asia.

But Mr Abdullah said the government had no choice but to raise prices. It relates to a long-term decline in the available supply of petroleum.

On a global comparison, Malaysian fuel prices still remain relatively cheap at 83 US cents a litre for petrol and 80 US cents a litre for diesel, but above those in China and Indonesia, which also heavily subsidise fuel. I wonder whether the Government is prepared for this.

As did the Iraqi parliamentary election due March 7. President Lee Seok-haeng stated: I daresay that the government are slowly taking away the oil subsidy given to the citizens.

Other major energy organisations, such as the International Energy Agency IEAhad already been much less optimistic in their assessments for some time. According to the U. In China, for a change, the oil stocks are higher than the demand.

The US Department of Energy in the Hirsch report indicates that "The problems associated with world oil production peaking will not be temporary, and past "energy crisis" experience will provide relatively little guidance.

Email Why did oil prices spike inand what role if any did speculators play. Significant increases were seen for rice, bread and other cereals whose indices have shot up by a whopping 18 per cent.

Certainly the people have not experienced any increase in their purchasing power because of the appreciation in the exchange rate between the US Dollar and the Ringgit.

Elsewhere in Asia, Malaysia has hiked fuel prices by 41 percent and Indonesia by around 29 percent, while Taiwan and India have also raised their energy costs.

Oil Price Hike in Malaysia 2008

But the government has rejected that, saying the group needs the fund to extend future energy production. The industrial policy must change so that high tech is promoted in order to give Malaysians higher wages to cope with rising costs of living.

Price volatility provides incentives to hold inventories, but since inventories are costly they are not sufficient to fully offset the rigidity of supply and demand.

Recognizing the severity of the crisis, the Government in March announced a second and larger stimulus package to be distributed over the next two years in an effort to stall the slowdown and prevent the country slipping into a serious recession, which if not addressed will have serious repercussions on social and political stability.

The outlook does not look too good, with a recession likely to happen sooner than later. While inflation has dropped in the past few months as the agricultural commodity bubble burst and oil prices fall from their peaks, food prices remain high with the consumer price index showing a sharp 9. As Nigeria is Africa's largest oil producer, investors feared for the oil exports from the region.

These committees of workers and peasants can also distribute food and fuel to those in need. In responding to calls for transparency and accountability, the Government said it will launch a special website to monitor how funds under the government's two economic stimulus packages are spent.

No more big feasts, and definitely no more presidential suits and first class air ticket for outstation business trips. Distillate fuel inventories fellbbl to Confidence of the businesses showed as the Inventories continued to increase.

The USD 17 billion plan will allocate money for fiscal injection, guarantee funds and other assistance for industry, equity investments and tax incentives. Countries like China and India, along with Gulf nations whose retail oil prices are kept below global prices, contributed 61 percent of the increase in global consumption of crude oil from toaccording to JPMorgan.

Production from Iraqi oil fields, of course, had still not recovered from wartime damage, and in late March saboteurs blew up the two main oil export pipelines in the south—cutting aboutbarrels per day from Iraqi exports.

Supermarkets shelves emptied, petrol stations went dry, and three car manufacturers suspended production for lack of parts. With the experience of the recession of the mid to late s in mind, there has been a proposal for a comprehensive social security plan.

Civil society organizations are holding protests and public fora to raise public awareness of the negative impacts of these crises, especially to the vulnerable groups in society. Fair enough since a good economy means better fuel demand. The goventment did mention that the oil price will be reviewed monthly in accordance of the market price.

At the same time, U. But neither hedging nor speculation in the futures market exerts any significant effect on current spot oil prices. Out of the USD 1. Iraqi Oil Minister Hussain al-Shahristani said "Despite the fact the global economy is gradually recovering, demand has not increased significantly enough to make us reconsider our production ceiling".

The toll exerted by the economic slowdowns of its major trading partners is seen in the drastic drop in external demand. I shudder to see the statistic.

The reasons for the oil price rise: While there are many reasons for the increase, some significant ones are: According to the U.S. Energy department, refinery utilization in the U.S.

Malaysian Fuel Price History

rose to %, an increase by % for the week ending February Sep 14,  · oil price hike: Find Latest Stories, Special Reports, News & Pictures on oil price hike. Read expert opinions, top news, insights and trends on The Economic Times.

Jun 10,  · Gas Malaysia said the increase was due to higher buying price of the fuel that it procured from state oil firm Petroliam Nasional Bhd.

The gas price hike is. * Ron 97 is subjected to 0% GST (Goverment Service Tax) starting 1st April As of Fuel price will be revealed weekly on Wednesday. “While global oil prices had increased in recent months due to an agreement to cut production by oil-producing countries — which also benefits Malaysia — the price of refined oil products.

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Oil price hike in malaysia 2008
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