Household income prediction model due to fuel price fluctuation: A review

Abstract

The world crude oil price has experienced the most volatile period in the beginning of 2007. The increasing trend has led to a significant impact on many economic sectors around the world. Moreover, individual also affected by the increasing in fuel price and deregulation of fuel subsidy around the world. As consequences, their income became insufficient to cover their monthly expenditure. Therefore, this paper gives an overview of the impacts of the fuel price on the economic sectors and individual. Several economic sectors found to be significantly affected namely transportation, manufacturing, agricultural, production and construction. This study also found that the household income significantly affected by the fuel price fluctuation. Hence, this paper reviews several prediction models to predict fuel price and household income. The regression and simulation models are found to be efficient in predicting the fuel price and household income. The review indicates that these models could be used to help individual, especially Malaysian in managing their income in the spike in fuel price. This study could be beneficial to all Malaysian which helps in managing their income and expenditure for better quality of life among Malaysian.