Petrol prices are back to what they were 2 cycles ago as the reduction in pump prices are identical to the increase for the previous 7 days. Thus RON95 petrol is back to RM2.16 from RM2.19 and RON97 Euro-4M is RM2.46 a litre again.
Diesel too has come down in price, and the difference is slightly more than for petrol. For the coming 7 days, starting after midnight today, the Euro-2M grade of diesel will be RM2.10 which is a 7 sen drop, while Euro-5 diesel will cost 10 sen more, ie RM2.20 per litre.
Looking ahead, industry analysts see a rise in oil prices – which will, of course, affect petrol prices. OPEC, the group of major oil-producing countries, will cut production of oil up till at least March 2018 and as US crude oil stocks diminish, prices have been steadily rising since the second half of this year began. OPEC expects global demand for oil to increase in 2018, and if supplies remain limited, then prices will continue to rise.
For the Malaysian motorist, this is not good news. However, as the ministry concerned has often explained, there are various factors taken into consideration when determining the pump prices and global oil prices are just one of them. Of course, if the Malaysian currency remains weak, then even if oil prices drop, the effect may not be seen in Malaysia.