What is the Relationship Between Crude Oil Prices and Petrol Prices in Malaysia?

srijeda , 15.11.2017.

Whether it is Malaysia, Indonesia or any other country across the globe, you will need petrol to fuel your car, bike, truck, or any other vehicle. Petrol is certainly one of the most precious commodities these days because it plays a very important role in making our life easier and enjoyable. We all need petrol to fuel our cars and bikes and the increasing petrol prices in Malaysia are worrying the consumers. Many experts believe that increasing crude oil prices are causing the hike in petrol price Malaysia.

Why the increasing crude oil prices are responsible for price hike?

OPEC stands for Organization of the Petroleum Exporting Countries. It had raised the crude oil prices due to the increased demands of crude oil across the globe. Now new oil resources are found and the demands in countries like the USA, China, Russia, have decreased because the USA claims to find the largest oil reserve on its shores. China is decreasing oil import because of poor industrial growth and Russia has its own oil reserves. The crude oil prices had started to decrease. The recent fuel price Malaysia was quite low during the decrease of crude oil prices.

Malaysian government determines petrol and diesel prices by revising the crude oil prices of the previous month. Therefore, the latest petrol price Malaysia is directly connected to the crude oil prices during the last month. It is the relationship between the crude oil prices and retail petrol prices.