Fuel hike imminent

Oil and gas markets came under intense pressure yesterday as Hurricane Katrina swept through the Gulf of Mexico, forcing the closure of oil production platforms, refineries and the Henry Hub the biggest US trading centre.

Oil prices hit a new record of $70.80 a barrel, although they fell back to $67.20.

Reacting to the trend of the ever increasing oil price Dato Seri Najib Tun Razak said that no government in the world can maintain fuel prices at the current level if the price of crude oil continues to spiral.

“It’s beyond us to control price of crude. So the consumers should not put the blame on the Government if there is a need to raise price of petrol or petroleum products.”

To the average Malaysians, it is time to realise that in this era of globalisation, we need to play our part in managing this sort of situation. Consume wisely and be ready to face the increase in fuel prices. The Government can no longer afford to maintain the fuel price through subsidies. Furthermore, subsidies will reduce our inefficiency and competitiveness in the global market.

Hurrican Katrina

Meanwhile, on the other side of the globe, Hurricane Katrina left at least 56 people dead in the US yesterday, and the toll is expected to climb following one of the most powerful hurricanes to hit the northern Gulf Coast in a half century. Tens of thousands will be homeless for months.

According to Bloomberg, US insurers were spared the worst of Hurricane Katrina, but still face an estimated $16 billion of claims from what may prove the second most-expensive storm in US history.