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

Author

Listed:
  • Nor Ermawati Hussain

    (School of Social and Economic Development, Universiti Malaysia Terengganu, Malaysia,)

  • Mohd Shahidan Shaari

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia,)

  • Diana Nabila Chau Abdullah

    (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Malaysia.)

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.

Suggested Citation

  • Nor Ermawati Hussain & Mohd Shahidan Shaari & Diana Nabila Chau Abdullah, 2018. "Effects of Retailing Selling Prices of Petrol and Diesel on Food Prices," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 28-32.
    • Handle: RePEc:eco:journ2:2018-04-4
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    References listed on IDEAS

    as
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    6. Christopher J. Neely, 2015. "How Much Do Oil Prices Affect Inflation?," Economic Synopses, Federal Reserve Bank of St. Louis, issue 10.
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    Cited by:

    1. Jasmine Chang, Aichih & Zhou, Fuqin & El-Rayes, Nesreen & Shi, Jim, 2024. "Food transportation and price impacted by diesel price and truck-driver shortage pre-, amid and post pandemic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    2. Chowdhury, Mohammad Ashraful Ferdous & Meo, Muhammad Saeed & Uddin, Ajim & Haque, Md. Mahmudul, 2021. "Asymmetric effect of energy price on commodity price: New evidence from NARDL and time frequency wavelet approaches," Energy, Elsevier, vol. 231(C).

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    Keywords

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    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices

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