Petrol prices have soared - what now?

I guess you all have come across the fact that oil prices will increase and decrease in price according to the demand and supply in the market. However, the situation is different if you are in Malaysia. That is because the oil price in Malaysis is a controlled item by the government.

Well, what would that means? It means that the government will have the power to maintain the petrolprices without preventing it from increasing when the oil prices go up. There is a problem though. You will never see that petrol prices go down in Malaysia. For the past five years, I have never seen or heard that oil prices go up and down in Malaysia. Instead, I have been told that oil prices will only increase as we approach a new year.

Look at other countries. One good example will be UK. UK petrol prices are governed by demand and supply. It is a few trade without any sort of tough restrictions. The good news is that consumers will benefit when petrol prices go down but suffer whenprices go up. That is the only bad part.

What am I trying to put across is that sometimes government intervention into commodities like petrolprices will result in increased oil prices in stages. Consumers will never see that petrol prices will fall in Malaysia. Never!!!

You will see the difference in petrol prices here and here. Enjoy!!!