According to oil companies, a P7/liter price spike is possible.
Shell chairman Edgar O. Chua, in a presentation, yesterday said the oil industry’s under-recovery for June alone amounted to P7.01. For the first six months of the year, under-recoveries have totalled P27.82/liter.
Mr. Chua noted that some neighboring countries have resorted to drastic fuel price hikes: China, by 18%; Malaysia, 60%; and India, 10% just last month. Bangladesh on Tuesday hiked prices by 40%, he added.
The government went to cut down tarrifs on imported oil and petroleum. With crude oil price trying to break $145/barrel, according to Mr. Chua, even cutting down the tarrif to zero will only result in a benefit of P1.20/liter.
We should accept reality. This will surely be cause a chain reaction. Once fuel price goes up, fares goes up, and of course ultimately the cost of living.
Source: Business World
http://www.bworldonline.com/BW070308/content.php?id=001
Shell chairman Edgar O. Chua, in a presentation, yesterday said the oil industry’s under-recovery for June alone amounted to P7.01. For the first six months of the year, under-recoveries have totalled P27.82/liter.
Mr. Chua noted that some neighboring countries have resorted to drastic fuel price hikes: China, by 18%; Malaysia, 60%; and India, 10% just last month. Bangladesh on Tuesday hiked prices by 40%, he added.
The government went to cut down tarrifs on imported oil and petroleum. With crude oil price trying to break $145/barrel, according to Mr. Chua, even cutting down the tarrif to zero will only result in a benefit of P1.20/liter.
In an interview, Shell spokesman Roberto S. Kanapisaid said oil firms should now be considering whether or not to declare the under-recoveries as lost income.
"There are times when we just declare the under-recoveries as unrecovered income. But it depends on other oil firms if they want to recover it," he said.
Alliance of Concerned Transport Organization (ACTO) national president Efren A. de Luna said, ”We will not complain about a huge amount of increase as long as we will be given a fare hike increase."
1-United Transport Koalisyon (1-Utak) president Vigor D. Mendoza said that they would ask for an additional 2-4 pesos increase to the currently 8 peso jeepney fare for the first 4 kilometers and 1-2.50 pesos per succeeding kilometer. Meanwhile bus operators would like an increase of 1.80 pesos per kilometer for non-airconditioned buses and 2.20 pesos per kilometer for airconditioned buses, according to Philippine Bus Operators Association President Homero A. Mercado.
We should accept reality. This will surely be cause a chain reaction. Once fuel price goes up, fares goes up, and of course ultimately the cost of living.
Source: Business World
http://www.bworldonline.com/BW070308/content.php?id=001
4 comments:
Gas is really expensive na tlga. lalakarin ko nlng galing bahay ko papauntang la salle. :| haha
The continuous increase of gas prices affects everyone. It is just sad that we really can't do anything about it. They said that a possible reason for this is that the supply of gas is becoming scarce. So let us not be ignorant about this issue and let us do our part in saving gas.
Maglakad na lang tayong lahat!!!
Joke. Seriously, the government should find ways to save gas. But people should also do their part.
For example, we can ride the LRT/MRT rather than driving our own car which builds up traffic thus leading to more gas being used. Hahahaha.
Support Public Transportation!
people should try using the public transportation in a effort to save fuel.
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