Oil Price Hike

 April 13, 2011

The Article:

http://newsinfo.inquirer.net/breakingnews/nation/view/20110411-330605/P150-per-liter-hike-in-oil-prices-loomsBayan

P1.50 per liter hike in oil prices looms—Bayan

By Amy R. Remo

Philippine Daily Inquirer

First Posted 18:33:00 04/11/2011

Filed Under: Consumer Issues, Oil & Gas - Upstream activities, Energy

MANILA, Philippines—(UPDATE) Local companies are expected to again raise fuel prices by as much as P1.50 a liter this week, according to the umbrella group Bagong Alyansang Makabayan.

Should companies push through with the planned oil price hike, this would be the 12th time that they would increase their prices since the start of the year as world oil prices continue to be on the uptrend amid the unrest in major oil-producing countries in the Middle East and North Africa.

An oil industry player confirmed that the price cited by the Bayan might be the level of increase this week if it was based on the movements of the prices based on the Mean of Platts Singapore benchmark for refined petroleum products.

Oil companies, however, have not made their respective announcements as of press time.

Bayan, in a statement issued on Monday, questioned the economic programs of the Aquino government in the light of spiraling fuel prices, which have not shown any signs of letting up, as well as increasing incidences of hunger and poverty.

“Soon, we will be approaching the first year of the Aquino regime. So far, its response to the people’s problems can be summed up in one word: ‘pantawid’ (bridge, subsidy or doleout). The Aquino government’s doleout economics will not result in long-term reforms and improvement of the conditions of the lives of the people,” said Bayan secretary general Renato M. Reyes, Jr.

“Aquino has continued the conditional cash transfer or Pantawid Pamilyang Pilipino Program of the Arroyo government. Now it has the Pantawid Pasada for drivers to allegedly ease the impact of high oil prices. These are not real solutions to poverty and unemployment,” Reyes further noted.

Reyes alleged that the Aquino administration was just reacting to long-term problems with temporary, “band-aid” solutions. This government, he added, was one of “adhocracy”—addressing deep-seated problems with ad hoc solutions.

Bayan also lamented that no meaningful wage increases have been implemented even as the Aquino government has been resisting calls for the removal or reduction of the value-added tax on oil and power.

The Reaction:

   Everyday at three o'clock in the afternoon, our household tradition would tell us that it's time to buy pan de sal for mirienda. It was a sweet custom I have grown into when simple children would enjoy a cup of hot chocolate and a full plate of pan de sal every afternoon. Times were simpler back then. When a full bag of pan de sal only costs five pesos. It's quite a boggle to me how a simple increase of the price of oil would be able to impact the once savored tradition that we had. But considering the knowledge that I have gained about it, it would lead me to the beginning and it would hit me with "Wow! It makes sense"

   As little homes like ours experience the effects of this hike of oil prices, so does the industries, companies and all other sectors that runs its business with oil. Perhaps the most intriguing issue about this is the staggering impact it has on the relation of people and transportation. Surely the first to feel this hikes are the little people who use oil to make a living. I once rode a tricycle from church to my dorm. The driver asked me to pay him 20 pesos while I normally pay other drivers 10. I considered it unfair and I still do until now, but thinking abut it with prior knowledge of how expensive the gasoline has become, I guess I could let it slide. More to the point, students and drivers are now having trouble with commute because of this hard times. students need to make simple decisions whether to ride a taxi which has raised its price to 40 pesos or to ride a jeep which has just added a peso to its fair, to go to a certain destination considering the distance and time if they can walk to save money. Drivers also need to decide how much to charge a costumer based on the distance and gasoline consumption.

   

   Another cause of oil price hike is the stunning impact it has to the economy of the Philippines. Just like the increase in transportation price was made, so it was to the different prices in the market economy. Prices have raised from five to ten percent while some have even doubled. Meanwhile the government sits back in their chair providing solutions that does not last. The society will not stay blinded for so long. Sooner or later  it will be noticed that this short term solutions are just a waste of effort on every ones part. We can't blame the government for the increase in the price of oil but it is hard to disregard the fact that they hold the power to make a better solution. They have made a progress - yes! But will it last? Not a chance! Businesspeople all over the world who are experiencing the effects of this global phenomenon are trying their best to cope but the question pops up in my mind: how far will the economy go before they would find the solution lies within the source? I am not an expert on this but I know that there is something definitely going on if the government does not do anything worth the effort about a problem.

   Even though much had been said about this problem (even the government was dissed) I do not wish to provoke unnecessary actions. Take note that these are my comments about this certain issue. I leave it to you whatever you have to say about this. All I know is, I'm not trying to jerk up a conversation that would dismount opinions. I don't have the knowledge of how to fix this problem, I admit. I just want to address those in authority to use all powers that they have to start finding better solutions to oil price hike. How I wish that the times would go back to the good old days. Things were simple and little kids like I used to be would have the privilege to enjoy a nice cup of hot chocolate with a full plate of pan de sal at three o'clock in the afternoon.

-Arthur S. Majaducon