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Oct 10, 2008

Petrol at RM1.92 if world price drops to US$72 a barrel

malaysianinsider | ...The retail price of petrol can dip as low as RM1.92 per litre, the price two years ago, if the world crude oil price drops to US$72 a barrel, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said today.

Oil prices plummeted to a one-year low below US$83 a barrel today in European trading as investor fears of a severe global economic downturn caused by the crisis in credit markets sparked a panicked sell-off of both crude and equities.

Shahrir said a continuous deflation of the fuel price was possible if the demand from the developed countries were reduced and there was an economic downturn.

“The government will reduce the fuel price based on the exchange rate of the ringgit against the US dollar. For example, in 2006, the world crude oil was priced at US$65 a barrel and at RM1.92 per litre with the ringgit being traded at RM3.80 for each dollar.... selanjutnya.

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