Lowest Gas Prices, The Effects Of Rising Oil Prices

Lowest Gas Prices
The effects of rising oil prices on fuel around the globe.
Malaysia
Malaysia has raised petrol prices by more than 40 % in an attempt to put a halt to government spending on fuel subsidies. The governement have been subsidising fuel in an attempt to uphold their low inflation policy.
Before this increase, Malaysia’s fuel subsidy made up almost a third of total government spending and was equivalent to about 7 %of gross domestic product, one of the highest proportions in the world.
The price of a litre of petrol in Malaysia will rise 41% to M$2.70, and diesel 63 % to M$2.58.
Malaysia has enjoyed one of the lowest inflation rates among developing countries - about 3 % - owing to fuel price controls, but it is thought that the price rise will push inflation to 4-5 per cent.
In comparison to other countries around the world Malaysian fuel prices are still relatively cheap at 83 US cents a litre for petrol and 80 US cents a litre for diesel, but it is more expensive than in China and Indonesia, where fuel is heavily subsidised.
The Malaysian population will indeed be following the trend in the USA, searching for lowest gas prices
India

India have also recently increased their fuel prices. Prices of petrol, diesel and liquid petroleum gas were raised by 8-17 %. This was done in an attempt to reduce the burden of fuel subsidies which are expected to reach $57.8bn this year.
India joins many other Asian countries that have been forced to take the same stance in recent days, as oil prices almost doubled in price globally over the last 12 months to more than $130 per barrel.
However the price of kerosene, the most important fuel for the poor, was unchanged.
China

China’s main cities are beginning to face growing fuel shortages.
Over the past week, petrol stations in Beijing, Shanghai and Guangzhou have reported an increase insupply shortages - especially of diesel oil - this has resulted in them either rationing their stocks or operating for only a few hours a day.
In spite of pressure on oil companies to increase supply, these shortages may well lead to a similar situation to last autumn when Beijing was forced to raise prices by 10 % despite concernes that fuel rationing was threatening social stability.
There is speculation as to whether China will respond swiftly to raise prices and cut subsidies as Taiwan, Malaysia, Indonesia and India have done in recently.
This is mainly because China’s short-term priority is to control inflation, which reached 8.5 % in April. Most economists believe Beijing will increase oil prices only once it is confident of a downward inflation trend.
Lowest gas prices is becoming an global issue. All countries are being affected and the only people who are untouched by the financial implication of this are those who are financially secure. I am delighted to be amongst the financially secure as I work for Its Good Business

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