Fuel price hikes unlikely to spark immediate inflation in Malaysia: economists
Rising fuel prices are manageable now, but a prolonged oil shock could test the country’s fiscal buffer
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[KUALA LUMPUR] Malaysia’s latest fuel price hikes are unlikely to trigger an immediate surge in consumer prices, but a prolonged disruption to global oil supply could eventually test the country’s fiscal buffers and inflation outlook, economists said.
Malaysia on Wednesday (Mar 11) said that the retail price of RON97 petrol would rise by RM0.60 (S$0.19), or 18.5 per cent, to RM3.85 a litre from Thursday. This as the government adjusts domestic fuel prices following a sharp surge in global oil markets driven by escalating tensions in the Middle East.
The price of unsubsidised RON95 petrol will also increase by RM0.60 or more than 22 per cent to RM3.27 a litre. The rate for the first 300 litres of subsidised RON95 petrol for all Malaysians remains unchanged at RM1.99 a litre.
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