The era of cheap oil prices is over and the people must accept the fact that petroleum prices will continue to rise, said Deputy Prime Minister Najib Abdul Razak today.

"The cheap oil price era has ended. This is the reality that Malaysians and the world as a whole must accept.

"We can no longer hide from the fact that the price of oil would continue to rise and the era of cheap oil price is over," he was quoted as saying by Bernama.

He was speaking at a special briefing on the oil price hike for staff of the information ministry last night.

On Feb 27, the government increased the price of petrol and petroleum products by 30 sen a litre, following an upsurge in the world's oil prices.

Announcing the hike, Prime Minister Abdullah Ahmad Badawi had said the government would use the savings from reduced oil subsidies to improve public transport.

The price hike had ignited widespread protests and even street demonstrations.

Najib, who heads the cabinet committee on fuel, said every Malaysian must accept the fact that the price of oil would not drop and it would continue to rise and could fetch up to US$100 a barrel.

"This is due to the rising demand for petroleum. It is also attributed to the strong demand from China, which is growing at nine per cent a year and India, which has a high growth rate," he said.

He said the high demand for oil was also related to the crisis between the United States and Iran, and the situation would worsen if America imposed a trade embargo on the latter.

At the same time, some quarters and analysts had predicted that the oil price could soar to as high as US$200 a barrel and this was not far-fetched, he added

Check on goods

Meanwhile, Minister of Domestic Trade and Consumer Affairs Mohd Shafie Apdal said his ministry would continue to monitor the price of goods following the fuel price hike.

"At this time, many traders are taking advantage of the situation by raising the price of basic necessities. We at the ministry are actively monitoring the situation and I personally have gone to the ground to conduct checks," he told the same briefing.

At the briefing, Information Minister Zainuddin Maidin also stressed on the role of the media in delivering the government's message to the people clearly.

He said the focus on the matter was important in efforts to realise the government's objective while avoiding confusion among the people.

He said the efficiency of the media in delivering the government's message to the people was vital to avoid negative elements from spreading like wildfire and poisoning the minds of the people.