The news source has noted that the increase in retail fuel prices across many Asian countries, whose demand has pushed oil prices higher, has helped in bringing down US crude prices to their lowest in three weeks.
Energy sector analysts have said that oil demand will remain unaffected until China raises retail prices. The increase in oil prices is putting pressure on governments to raise fuel prices at a time when inflation fears are running high.
The sustained oil price rally has forced the governments of Taiwan, Sri Lanka, Bangladesh and Indonesia to reduce subsidies.
India has raised petrol and diesel prices by around 10%, has reduced import duty on oil and has increased the price of cooking gas by 17%. Meanwhile, the Malaysian government has raised petrol prices by 41%. Malaysia will also be introducing global market rates for fuel starting August 2008 to reduce the impact of subsidies on the national budget, according to Reuters.
