THE relentless rise in global oil prices of late and the potential drag that costlier oil could have on world economies have become a pressing issue.
Closer to home, the decision to raise fuel prices by 30 sen per litre was received with dissonance, indicating a precursor to rising prices. While some quarters may argue that higher fuel prices dampen growth, mainstream economic theory and oil price economics suggest otherwise – a rise in fuel prices is not explicitly detrimental to economic growth.