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The price variation in crude oil impacts the sentiments and hence the volatility in stock markets all over the world. The world equilibrium price of gasoline fluctuates primarily because of spikes and collapses in crude oil input prices caused at various times by supply disruptions and gluts, increasing demand in developing countries, and speculation.

Does the above statement explain what happens to (i) the world price of gasoline (petrol) in general and (ii) the price of petrol in Malaysia, in recent years? Support your answer with appropriate facts and figures.

Are there any other factors that affect the price of petrol in Malaysia? Explain.

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