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18 February 2016

Oil prices have come down, so why not flight tickets?

Obviously, if oil prices have come down due to a production glut, it would not be conscionable for airlines to continue to charge passengers the same price as though the oil glut never happened. The drop in oil prices should be reflected in cheaper transportation and energy costs. Instead, in Malaysia, we find ourselves paying more for electricity bills, thanks to reduced subsidies. So have the costs really come down? Perhaps for airlines and for energy companies. But not for end consumers.

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