Effects of Retailing Selling Prices of Petrol and Diesel on Food Prices

Authors

  • Nor Ermawati Hussain Universiti Malaysia Terengganu
  • Mohd Shahidan Shaari Lecturer
  • Diana Nabila Chau Abdullah

Abstract

Oil is the main commodity for all countries in the world. Hence, the fluctuation in the price of the commodity has alarmed policy makers as it can cause severe problems such as food price inflation. The effects of oil prices on food prices have remained a topic of debate. Therefore this study aims to shed some light on the effects of oil prices (RON95, RON97, diesel) on food prices in Malaysia. The ARDL approach was employed and the results show that the price of petrol does not have any effect on food prices. The price of diesel was found to be detrimental to the economy as it can trigger inflation in the long run. However in the short run, the prices of petrol and diesel do not inflict any food price inflation in Malaysia. Therefore, the Malaysian government should control the price of diesel to avert any food price inflation in the long run.Keyword: RON95, RON97, diesel, food pricesJEL Classifications: Q18, Q3, Q31

Downloads

Download data is not yet available.

Author Biography

Nor Ermawati Hussain, Universiti Malaysia Terengganu

Department of social anbld economic development

Downloads

Published

2018-07-16

How to Cite

Hussain, N. E., Shaari, M. S., & Abdullah, D. N. C. (2018). Effects of Retailing Selling Prices of Petrol and Diesel on Food Prices. International Journal of Energy Economics and Policy, 8(4), 28–32. Retrieved from https://econjournals.net.tr/index.php/ijeep/article/view/6443

Issue

Vol. 8 No. 4 (2018)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.