The international oil price shot up to ceiling high primarily by demand and speculative drive. This has landed the whole world in a sizzling hot oil talk.
Malaysia apparently could no longer take it any more and decided to desubsidise in a drastic move to get breathing-space.
The 40% surge took the whole nation by surprise. The rakyat cried out loud to express their deep concern about the impact.
But this is beneficial to the nation in a long-term perspective, our leaders chipped in with their reasoning.
Some tried to pin-point the culprits, hoping to be rational rather than emotional. They have the point!
That should take our view to the international arena where oil is traded increasingly with frenzied speculation.
Goldman, Citi, JP Morgan and Morgan Stanley have been the known major speculators in oil trading, driving up the oil price to record high. So, are they to be blamed?
No, they are all purely in financial investment business, trading within the established legal framework.
Impose windfall tax and restrict speculative trading, cried out the leaders of the world.
Great idea, but would it be effective? I really have reservation!
Let's all wake up to it - we are now in an era of expensive fuel! Gone forever are the days of cheap oil!
The above picture was taken when Sibuians were driven by rumours to flock to petrol stations to fill up tanks two nights ago. There was wild rumour flooding the market that the stations would go on strike following a failure to settle on petrol commision. The picture is by courtesy of LIONG.