Global crude oil price has dropped dramatically during the end of June plunging as much as 20% from $60 per barrel to $48 per barrel as of end of July. There are several factors that caused the reduced demand for oil.
The Iran Nuclear Deal was reached where sanctions on Iran oil and gas sector is expected to be lifted and the world is expected to have more supplies of oil. The crash in China stock market, Greece issues and world economy uncertainties and recently the fall of Gold and commodities price have also reduced the demand for the black gold.
Floating Price Mechanism
Malaysian has effectively removed it’s fuel subsidy at the end of 2014 as part of government effort’s on subsidy rationalization program. The pump price are set of floating mechanism where it will be adjusted on monthly basis based on the global oil price.
Prices for Ron 97, Ron 95 and Diesel has increased substantially over the past few months however will the price be adjusted with the recent slump in global oil price? Malaysians will just have to wait until the midnight of August to know the next price for fuels.