Economist Niaz Asadullah cautioned against the potential negative effects of fuel price volatility, including trader speculation and anticipated inflation, which could hinder economic growth.
According to FMT, he warned that powerful syndicates might exploit uncertainties, destabilising the market further, while the anticipation of future inflation could impact consumer spending and producer decision-making, affecting economic stability.
Niaz also highlighted the risk of delaying essential reforms if the government fails to adjust fuel prices promptly, potentially jeopardising pro-poor programs and undermining the goals of the Madani framework.
He emphasised the need for carefully sequenced subsidy cuts to allow both producers and consumers time to adapt, urging the government to improve policy communication to avoid confusion and panic among citizens and industry stakeholders.
Barjoyai Bardai of Malaysia University of Science and Technology noted that the government’s dismissal of speculation has eliminated uncertainty about future fuel prices, ensuring stability for consumers and the market.
He suggested that maintaining the current subsidy policy would provide stability for all users, including the B40 group, without the threat of sudden price increases.