Should The Government Increase The Petrol Prices In Developing Countries?

1787 words - 8 pages

Petrol also known as gasoline, is denoted as the light fuel oil which is obtained by the process of fractional distillation of petroleum (Oxford Dictionary, 2013). Petrol is abbreviated from the word “petroleum”, which is derived from the Greek word ‘petros’ and oleum (Health Protection Agencies, 2011). It 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 day before 1990’s, a litre of fuel costs us RM0.89, and since, it started increasing to RM1.10. For the year 2008, a litre of petrol is increased by 78 cents from RM1.92, which then costs us RM2.70 (The Star, 2008). Today, a litre of RON97, which is high-octane premium unleaded petrol, is retailed at RM2.85 per litre, whereas RON95, which is lower octane unleaded petrol, is retailed at RM2.10. The increase of price on fuel pump at around 20 cents per litre can help the government to save about RM1.1 billion this year, and even RM3.3 billion every year in future(Ramasamy, M. and Pookoon, N.,2013).
Although some might think that government should increase the petrol prices as a channel to develop a country economically; however, it gives many negative impacts in other ways. Thus, the purpose of this paper is to point out the consequences of the increase of petrol prices on individuals, society, and a country itself.
First and foremost, the increase of petrol prices can cause inflation. According to Overseas Development Institute, since 2007, many developing countries face strong inflation pressure because of their large consumption of food and fuel products due to increase of petrol prices (2012). This is because increase in petrol prices gives effects on the costs of production, such as oil-derived fertiliser and freight costs. Suppliers and vendors will take the chance to increase the price sold of food. Thus, people have to pay more for the same products. According to International Monetary Fund, there is an increase for almost 70 percent of 2007 headline inflation in food price in emerging economies (2013). There can also increase the competition between food industries as the increase in oil prices as agriculture can manufacturing can lower the budget spent on petrol to replace oil with biofuels that use crops such as cereals and sugar cane.
Furthermore, the increase in petrol price can give effects on transportation fees. According to The Star Online, there is about 15% hike on transportation fees by those lorry owners (2013). Consequently, everything can be more costly when there is an increase on transportation...

Find Another Essay On Should the Government Increase the Petrol Prices in Developing Countries?

This house believes India should slow its economic growth to help the world's climate Should developing countries mitigate climate change

2369 words - 9 pages ;principle of common but differentiated responsibility’ (Kubota and Fujioka 2008; Singh 2008). In Lehman’s terms, Singh believes that developed countries should foot the bill for reversing climate change. Unfortunately for Singh, the evidence suggests that India will be faced with massive costs if global emissions continue to rise unchecked. Various reports have estimated that India would be one of the world’s biggest losers from climate

Male circumcision should be promoted in developing countries as major means of HIV prevention

1010 words - 5 pages HIV cases are in developing countries especially from Africa. Therefore, a cost effective intervention like male circumcision that can suit for African developing countries is needed. Male circumcision (MC) is the complete or partial surgical removal of the foreskin of the penis, and is one of the oldest known surgical interventions carried out for religious, societal or medical reasons (WHO RH Library). Circumcision is most prevalent in

Male Circumcision should be Promoted in Developing Countries as Major Means of HIV Prevention

1118 words - 5 pages partner (WHO, 2013). Whether or not such intervention should be promoted as a major mean of HIV prevention at all developing countries, is still under discussion and in need of further investigations. As a public health personnel as well as an observer, I would like to discuss this from the general point of view. Discussion according to the Literatures Male circumcision (MC) has been practiced traditionally in more than 700 African societies

MALE CIRCUMCISION SHOULD BE PROMOTED IN DEVELOPING COUNTRIES AS MAJOR MEANS OF HIV PREVENTION

1064 words - 5 pages circumcision. In recent years, male circumcision is progressively being integrated as a key component of comprehensive HIV prevention strategies in national responses to AIDS in many countries (WHO, 2009). Therefore, this essay aims at supporting the statement states that male circumcision should be promoted in developing countries as major means of HIV prevention. The arguments will be built from published and unpublished literature on the

Monetary policies in the developing countries

3723 words - 15 pages websites.MAIN PARTDuring the transitional period, the above mentioned countries have faced the macroeconomic problems, such as fall in output, increase in unemployment and inflation, lack of finance, current account deficit, and deterioration in the balance of payments. As mentioned above, monetary policy plays the main role in attaining the macroeconomic stability. Stable prices encourage economic growth, which tightens up macroeconomic and

The Proliferation of Technology in Developing Countries

1544 words - 6 pages imagination the Mac had the most innovative type face in popular computing. Analyze the current business environment and identify a new flattener not mentioned on Friedman’s list in figure 1.1 on page 4. The current “flattening of the world” brought about by the advancement of large developing countries like China and India has created a business environment that annually consumes 98,000 terawatt hours of energy. 1 terawatt hour = 1billion

Water Borne in Diseases in Developing Countries During the Summer

505 words - 2 pages tablets should be distributed freely for in a disease affected area. Officials should collect water samples for testing and all precautionary steps were required in place to arrest the spread of diseases. . An Integrated Disease Surveillance Program must be created and all private and government health institutions in and around must report to it with the details of each casesAwareness must be provided through TV and Radio Advertisements

Microfinance: Improving the Standard of Living in Developing Countries

1090 words - 4 pages is a problem in terms of advancing the financial stability of a community or family. Although a family is capable of creating a steady income in rural areas, the disparity in income between rural and industrialized or urban areas should be a motivator in child and female education. Unfortunately, that may not be the case in some developing countries.  We can deduce conclusively that microfinance is, in actuality, an effective way to

The world banks role in developing third world countries

702 words - 3 pages Research Question: Third World countries are often criticised for developing without considering the environment, as a result the destruction of natural rainforests and animal habitat is increasing at a rapid pace. Nevertheless the IMF and The World Bank continue to lend money to third world countries that use the money to finance environmentally destructive projects in a bid to develop quicker, should the World Bank and IMF be held accountable

The Economic Effect of Child Labor in Developing Countries

889 words - 4 pages Nowadays, child labour is one of the most important problems in some countries and this problem tends to spread around the word day by day. Some researches indicate there are approximately 246 million children around the world whose ages are between 5 and 17 have to work in job. In addition, nearly 70% or 171 million children are likely to work in harmful conditions. Working in mines with chemicals or pesticides in agriculture are only two

Should the Minimum Wage Increase?

1573 words - 7 pages , his salary and extra money doesn’t fully pay off his simple living expenses. In fact, he is $600 short every month, which makes his family of five suffer. His story points out income inequality and how the minimum wages don’t cut it for many. Kevin and many others that can relate, join him on strikes, so lawmakers could bridge the income gaps. With that article being said, a debate of whether or not the minimum wages should increase occurs. I

Similar Essays

Should The Government Increase The Petrol Prices In Developing Countries?

2084 words - 9 pages Although some might think the government should increase the prices of petrol as a medium to help develop a country economically, there are many negative impacts of doing so. Thus, the purpose of this paper is to point out the consequences of the increase of petrol prices on individuals, society, and the country itself. First and foremost, petrol prices should not be increased as it can cause inflation. The increase in petrol prices affects the

Should The Government Increase The Petrol Prices In Developing Countries?

2080 words - 9 pages ). Although some might think that government should increase the petrol prices as a channel to develop a country economically; however, it gives many negative impacts in other ways. Thus, the purpose of this paper is to point out the consequences of the increase of petrol prices on individuals, society, and a country itself. First and foremost, the increase of petrol price may cause the increase of domestic and goods price dramatically. When there is

Responses Of The Government To Problems In Developing Countries (Look To Actual Essay For Full Heading)

930 words - 4 pages “An enlightened governmental approach to the challenges faced in mega cities, is to realise its limitations and to encourage individuals and groups such as community, NGO’s, self help projects, to improve the standard of living”One of the key obstacles that the government must first realise and understand is that it cannot cater for all the challenges that arise in mega cities. Often, the government is forced to focus on the

Should The Government Increase The Number Of Hours Learner Drivers Need To Complete?

662 words - 3 pages English EssayShould the government increase the number of hours learner drivers need to complete?There have been widespread rumours going around Victoria in the past few months that the government are going to increase the amount of hours that learner drivers need to complete. Victorian learner drivers have to complete 120 hours of driving, 40 hours being completed at night. This is already a massive amount of hours, more than any other state in