RM2.00 petrol by November 15?

RM2.00 petrol by November 15?

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 Lower global price prompts continuous bi-weekly review

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Domestic Trade and Consumer Affairs Minister, Datuk Shahrir Samad must be one of the most popular politicians of the day. Over the weekend he said that fuel prices may drop again and if we go by his last announcement, it seems that a 15 cen cut is probably in the wings.

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This will bring oil prices to just above the post hike level of RM1.92 per litre but as oil prices drop and stay below the USD70 per barrel mark, there is every possibility that this may drop further.

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Taking into account the shaky global economy, oil prices may sink further in the short to medium term and this may mean even lower prices for us.

Shahrir did say that the Government may not want to reduce petrol price below the Rm1.92 mark but as the Malaysian economy is affected by the global slowdown, there may be arguments for further reductions, as a temporary measure to stimulate the local economy.

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Keep a close eyes on the global stock market, after dipping below 8600 points on the burden of worsening US unemplyment figures , it is rebounding to just above 8900 points. Further movements of the market will depend customer spending during the upcoming festive season adn the deep discounting, even in upmaaket shops are an indication of teh sharp dip in US consumer confidence. If the spending does not improve then the market will further fall.

The bad news from General Motors, Ford and Chrysler will weigh the market down further and as ti is, things are not lookign good. GM says it wll have cash till mid of next year while Ford says it can last till 2010 if the downturn persists. Premium makes like BMW are reporting huge profit drops and are not expecting sales to pick up soon.

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At this point in time, I am half hoping that oil prices will pick up again on the strength of the global economy because a fall in price that is driven by depression, ratehr than production efficiency is nothing if not a signal for disaster

2 COMMENTS

  1. To Malaysian consumers they are not so interested on how much oil prices will go down and down, BUT the most important is how powerful is the Malaysian Government to push the traders, supermarkets, retailers, wholesalers, bus operators to cut their consumer prices in line with the reduction of oil prices announce by the Government from time to time. My view is the present Govenment is weak in enforcement but good intalking.

  2. I found your blog on MSN and read a few of your other posts. I just added you to my favorites. Keep up the good work. Look forward to reading more from you in the future.

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