Aquino to DOE: Soften oil price hike impact on public
01/22/2011 | 09:23 PM
President Benigno Aquino III on Saturday ordered the Department of Energy (DOE) to soften the impact of oil price hikes on the public.
Presidential Communications Operations Office head Herminio Coloma Jr. said Aquino is bothered with continued hikes in world prices of oil.
“We are constantly monitoring the price movements and I assure you that we have not yet been seeing any price manipulation taking place locally since we can calculate accurately the petroleum price increases on commodity prices," Coloma said, according to a statement released Saturday evening by Malacañang.
The Palace statement said diesel retail prices had shot up to P40.25 per liter.
But Coloma also reminded oil companies not to take advantage of the situation because of the law of supply and demand.
When oil prices get too high, he said Filipinos' buying habits will change and very few will be left buying their products.
He added DOE Secretary Jose Rene Almendras is now persuading executives of major oil companies if they could give special rates to public transport vehicles, including jeepneys and buses, which directly affect the riding public.
Also, he said that the Land Transportation Franchising and Regulatory Board (LTFRB) is studying asking the public transport drivers to continue granting discounts for students, as well as senior citizens. — TJD, GMANews.TV
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Personal Reaction:
Presidential Communications Operations Office head Herminio Coloma Jr. said Aquino is bothered with continued hikes in world prices of oil.
“We are constantly monitoring the price movements and I assure you that we have not yet been seeing any price manipulation taking place locally since we can calculate accurately the petroleum price increases on commodity prices," Coloma said, according to a statement released Saturday evening by Malacañang.
The Palace statement said diesel retail prices had shot up to P40.25 per liter.
But Coloma also reminded oil companies not to take advantage of the situation because of the law of supply and demand.
When oil prices get too high, he said Filipinos' buying habits will change and very few will be left buying their products.
He added DOE Secretary Jose Rene Almendras is now persuading executives of major oil companies if they could give special rates to public transport vehicles, including jeepneys and buses, which directly affect the riding public.
Also, he said that the Land Transportation Franchising and Regulatory Board (LTFRB) is studying asking the public transport drivers to continue granting discounts for students, as well as senior citizens. — TJD, GMANews.TV
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Personal Reaction:
This one's a good issue! I totally agree to President Noy for making this move. I think this one will give the public a big sigh of relief. As what I've said in my last month's post, everything else is increasing every now and then except the amount of money earned by the people directly affected by the increase. And on that note, I suppose that the public would appreciate if the order made by our President to soften the impact of oil price hikes will be implemented.
This issue is somewhat related to my recent post and so I am very happy hearing this order because it will not only benefit the people owning cars but the majority of the Filipinos who ride jeepneys and buses everyday. And as what Presidential Communications Operations Office head Herminio Coloma Jr. said about President Aquino being bothered with continued hikes in world prices of oil, All I can say is that such an increase is really bothering! And I believe that I share the same sentiment with the Filipino people. It is also good to hear that the government is keeping an eye on the price movements and assuring the public that there are no price manipulations taking place locally as what has been said by Presidential Communications Secretary Sonny Coloma.
Regarding the increases in oil price, I could only suggest that the government will take an action concerning the issue. And President Noy giving an order to the Department of Energy (DOE) to soften the oil price hike impact on the public is a good thing! Actually, it is a good response to the issue affecting the Filipino people. Another suggestion I made concerning this issue was for the oil companies to lower their price increase. As a student taking up economics, I can only agree to Coloma reminding the oil companies not to take advantage of the situation because of the law of supply and demand. The changes in the oil prices would really affect the buying habits of the Filipinos. If these companies will not consider the public (buyers/consumers) in setting their price(s), they would be the ones to suffer in the long run. As what Coloma said: "When oil prices get too high, Filipinos' buying habits will change and very few will be left buying their products." And then I realized, It is indeed important to have a basic knowledge and understanding of the law of supply and demand.
I would also recommend that DOE Secretary Jose Rene Almendras continue to persuade executives of major oil companies to give special rates to public transport vehicles, including jeepneys and buses, which directly affect the riding public. I bet this one is a good idea! Moreover, I commend the idea that the Land Transportation Franchising and Regulatory Board (LTFRB) is studying asking the public transport drivers to continue granting discounts for students, as well as senior citizens. Another good move I suppose!
I believe that there is always a way for everything. The suggestions above may sound as if they are in favor of the public and not the suppliers and oil companies. But I trust that such an act of President Noy would benefit both parties in different ways - The buyers as well as the sellers.
