Thursday, May 20, 2004

Oil Price Hike...

The chronic issue of oil price increase always brings out the best of the worst in a person’s way of life.

I used to monitor this issue before and I always end up thinking that oil price increases every other month. But now? The frequency and consistency of such increases is quite alarming. Just last week, prices of oil and diesel surged to PhP1 per liter and PhP1 per kg of kerosene.

The price of oil is one indicator of an economy’s stability. There is always an effect when oil prices become unsteady.

This recent trend will undoubtedly impel protests among sector, especially the consumers (that includes you and me).

Transport sectors will react, asking for fare increase and commuters will complain. Resistance from commuters will certainly drive buses and PUVs to upstage nationwide transport strikes thereby creating a domino effect that will affect workers and production from manufacturing businesses.

Jacking up the price of oil triggers fear that prices of basic commodities will increase, too. Firms and businesses dependent on oil for their production process will definitely reflect the “incurred damage” of fuel to their finished product.

There is only one thing that is consistent in all these – the stunted growth of our salary. All of us are trying hard to earn our keep but in these times, is it still possible even to save a damn peso? We have to battle paying an increased fare, buy a high-priced basic commodity and everything follows. But our salaries remain the same.

Sometimes, I wonder if the Iraq crisis can change the landscape of the world market for oil. But of course, it is not only the reason why oil prices escalate but my impression is that the Iraq-US crisis definitely bears down on it.

Regarding the issue on salary increase, people in the office are being mum about it.

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It is always refreshing to know what is in your mind. Thanks!