Oil Price

5.6.2008.

The current petrol-diesel price hike was expected though the quantum and timing wasn't. As I said in my blog, being an oil producer ourselves, Petronas' accumulated reserves could have been used to lessen the impact and at the end of the day Petronas can still show a profit. 30% of all costs of goods is for transportation, so the effect of a higher fuel cost is plain to see. The inflationary effect is inevitable. The baht meltdown during your watch was a bigger threat to the economy, Tun. Your unorthodox but creative approach pulled us through. The bravery that you showed was eye-opening to the prevailing economic wisdom then. I wonder what sort of wisdom prevails in Putra Jaya now, if any.