Should the Government Increase the Petrol Prices in Developing Countries?

1710 Words Jan 27th, 2018 7 Pages
Petrol is abbreviated from the word “petroleum”, which is derived from the Greek word ‘petros’ and oleum (Health Protection Agencies, 2011). Petrol started to be used as product name by a London company, Carless, Capel and Leonard at the end of the 19th century. Nowadays, it becomes an indispensable part of our life, which is widely used as the fuel in vehicles and petrol powered engines. It can also be used as the power generator of electricity. However, due to the strong oil demand from countries all over the world, even Malaysia as an oil-exporter country, for over the 20th century, fuel price has been fluctuating ever since and increasing from day to day. Back to the days before, a litre of fuel only cost us RM0.89, and it started increasing to RM1.10 since 1990’s. For the year 2008, a litre of petrol increased by 78 cents from RM1.92, which then cost us RM2.70 (The Star, 2008). Today, a litre of RON97 is retailed at RM2.85 per litre, whereas RON95 at RM2.10. The increase of price on fuel pump at around 20 cents per litre may be helping the government to save about RM1.1 billion this year, and even RM3.3 billion every year in future(Bloomberg News,2013).

Although some might think that government should increase the petrol prices as a channel to develop a country economically; however, it gives many…