Poor, middle classes to suffer
(First of two parts)
MANILA, Philippines—The worst is yet to come, consumer welfare advocate Raul T. Concepcion has warned, as international oil prices soar.
Concepcion, chair of Consumer and Oil Price Watch (COPW), said fuel and basic commodities would post the biggest price increases this month, exacting a heavy toll not only on the poor but on the middle class.
As of June 7, the price of crude oil in the New York Mercantile Exchange reached a record $138.50 a barrel, very close to investment bank Goldman Sachs’ forecast of $141 in the second quarter. Goldman Sachs sees prices topping $200 a barrel by 2010.
When crude prices hit $135 a barrel two weeks ago, oil industry executives in the Philippines said they needed to recoup between P8 and P11 a liter, which would push up the price of gasoline to P65 a liter and that of diesel to P58 a liter.
A $1-a-barrel jump in international crude prices translates to an increase of about 35 centavos a liter at the pump, according to the domestic oil industry’s rule of thumb.
Oil shooting up to $200 a barrel would push pump prices of gasoline to about P88 a liter and of diesel to about P71 a liter—assuming that the value of the peso against the dollar remains the same.
Concepcion, who was in New York, said in an e-mail that in the United States, “the House and Senate are conducting televised hearings chastising oil companies [that are] making profits more than threefold and with no concern” about the impact on consumers.
SOURCE: link
6 comments:
I just read this article in inquirer.net about the oil prices in our country. I can really say that they are quite high. I feel bad for those who would be really affected by the increase in prices, like those jeepney drivers.
The increase in prices are not only happening here in the country but worldwide. "The worst is yet to come, consumer welfare advocate Raul T. Concepcion has warned, as international oil prices soar." But I guess as a third world country it is hitting us bad.
Anyway. With this increase in oil prices I'm pretty much sure that other prices would follow too, one of which is the fare on public transportations. I just hope it wouldn't lead to another strike.
Having posted a similar post in this blog, I can understand completely what is happening in our country.
Oil prices are a major issue right now. Our government may be coming up with solutions left and right, but it isn't enough, because they aren't being followed at all.
Eventually, all other prices will rise so high, our economy wouldn't be able to recover. Efficient solutions are needed immediately.
the rising oil prices makes it harder for people to survive everyday life.I can remember my father only paying four hundred pesos for a full tank. i do not think the government is doing something about this crisis. many people are suffering form this price hike. only those in the higher middle-class are able to take this high oil prices
oil prices today is very high, everyone is affected in this crisis and the government is not doing anything to solve this problem. we should find an alternative as soon as possible.
There is no doubt that the increasing oil prices is an issue that the government must carefully observe. If the oil prices continue to increase, inflation may grow to high for anyone to cope with. The people have to be ready for the worst. The government must also find ways to form renewable energy.
Oil is a non-replenishable resource so it might not be possible to avoid the increases in price. Alternative sources of energy may be our only option.
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