Oil price hike in Malaysia

The recent fuel price hike of 40.6% to RM2.70 per litre of petrol has major negative impact on the economy of Malaysia. The inflation rate spirals and the concern of interest rate hike dampen the economy mood. The Government propagated that although there is a steep increase in the petrol price, our petrol price remains lower in the regions. However, in fact our price of petrol at RM2.70 is among the highest globally on the purchasing power parity (PPP) basis.

While the neighboring countries increased the interest rates to curb the inflationary pressure, Bank Negara maintained the Overnight Policy Rate at 3.5% to sustain the economy growth. Whether or not Bank Negara raises the interest rates, the economy would suffer from uncontrollable inflationary pressure or slower economy growth. This dilemma is suffered by all the Central Banks and there is no confirmative conclusion on its solutions. However, the fact that Malaysia suffers seriously from the......

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Title: Oil Price Hike In Malaysia 2008 To Rm 2.70 Per Litre (Discussion)
Approximate Word Count: 388
Approximate Pages: 2 (250 words per double-spaced page)

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