Palace backs oil price hike

By ELLSON A. QUISMORIO and GENALYN D. KABILING

March 2, 2011, 7:53pm

MANILA, Philippines — While the government’s hands are full assisting displaced overseas Filipino workers in Libya, the Aquino administration may have to work overtime as one of the collateral damage from the ongoing political unrest in the oil-rich nation is the escalation in the pump prices of fuel and other petroleum products.

Deputy Presidential Spokeswoman Abigail Valte said the latest round of oil price increases, which took effect last Tuesday, is warranted with the upward trend in the world market.

“The market is very volatile today. The oil prices are not only increasing in the country, but also other nations importing oil due to the unrest in Libya,” said Valte, adding that the hike of as much as P1.25 per liter is “within their computations” of the Department of Energy (DoE).

Amid this, Valte stressed the government is not inclined to support proposals to repeal the Oil Deregulation Law, saying the state cannot afford to subsidize the oil requirements of Filipinos due to limited resources.

“There are calls for the regulation of the oil industry but it will take a big amount of money from the government to fully subsidize, to take over the oil industry,” she told reporters.

The country’s monthly oil bill is estimated at $1 billion.

Under the deregulated environment, oil players have the flexibility to adjust the prices of their products to reflect the price in the global market.

Tuesday’s hike, the third since Feb. 8, was the biggest so far this year. But as uncertainty in Libya lingers so thus the uptick in oil prices. Authorities have forewarned the public to brace for more increases in the coming days.

So, what do cost-weary consumers have to say about the oil firms’ continuous price increases?

The increase in diesel costs has sent the riding public worrying that public utility jeepney (PUJ) drivers and operators would once again demand a hike in jeepney fares.

“Parang nabale-wala rin yung idinagdag na P1 sa pasahe dahil higit na sa P1 yung itinaas ng krudo (This means that the P1 fare increase is useless since diesel has gone up by over P1),” said Randy Boy Buizon, 38, a PUJ driver in Taguig City.

It, too, means a dent on the pocket of the students like Kenneth Matthew Gonzales. “Mabigat na nga sa bulsa yung itinaas na P1 (The P1 increase is already burdensome),” said Gonzales, 19, a junior at Colegio San Juan de Letran. “There should be a point when the government will step in and tell oil companies that enough is enough,” he added.

Patrick Mayo, 29, a marketing manager, was “shocked” to find out the change in fuel prices at a local gas station. “I was shocked upon seeing that Shell had raised its unleaded from P50.75 to P52 in a single day!” he shared.

Expensive gasoline has made a commuter out of 21-year-old call center agent Jover Dailo, who used to ride his motorcycle to work. Now he finds the jeep as a slightly cheaper alternative.

“Dati yung P100 ko halos tatlong litro ng gas na, ngayon kulang pa sa dalawang litro (Back then my P100 was good for almost three liters of gas, now it’s not even enough to buy two),” Dailo lamented.

Prior to  the political tension in Libya, the price of liquefied petroleum gas (LPG) was on a downward trend. However, the direction took a 360-degree turn with the price of LPG up by P1.50-per-kilo.

“Sinasabi nila noong nakaraan buwan na pababa ang LPG, bakit ngayon biglang itinaas? (Last month they were saying that LPG prices were going down, so what’s with the sudden hike?)," Anecia Javier, scratching her head, said.

REACTION:

Once there would an increase in LPG the result would an increase also in the fares of the jeepney and tricycle especially in the provinces.  The mistake that they have done is that they did not announced earlier that there would be an increase in LPG so the drivers encounter a sudden shocked relating this matter.  The good thing that they must change is that they must announced it earlier that there would be an increase in the LPG for the drivers not to be shocked in this matter because they were excepting low prices in the LPG but unfortunately there is an increase of prices.  So, the drivers now are complaining that they must increase also their fares because its unfair for their part as drivers "kasi hindi kaya ng kanilang sahod sa pamamasada ang pabilisan ng pagtaas ng presyo ng langis".  According from what my tita told me on what she saw in the Inquirer that in Manila jeepney drivers demanded a 12 pesos minimum fare because of the oil price hike.  They must think also for those who are really working hard for their families. They must think before they act and promulgate in as early as possible for the drivers not to expect for the worse for the must expect for the best.

DA urged to step up efforts to attain food sufficiency

By Marianne V. Go (The Philippine Star) Updated February 25, 2011 12:00 AM

MANILA, Philippines - The Department of Agriculture (DA) must give more urgency to its food self-sufficiency and security program in the light of increasing global food production shortages as a result of climate change and other factors.

Ric Pinca, executive director of the Philippine Association of Flour Millers (PAFMIL), said the DA should encourage the local production of corn and soybeans which together comprise about 85 percent of animal feeds.

According to Pinca, corn is an alternative to rice and it ease pressure on rice production.

Pinca pointed out that food security has become more imperative in the face of what is happening to wheat.

Global production of wheat for 2010/2011 is projected to decrease by five percent to 645 million metric tons due to the effect of climate change which has ruined wheat production in Russia due to a prolonged drought, severe winter in Canada and flooding in Australia and Pakistan.

According to Pinca, wheat prices have doubled from of $4.48-$4.80 per bushel nine months ago to around $9.20/bushel.

Locally, Pinca said, flour prices have already moved up to P850 per 25 kilogram bag from P800/25 kg bag six months ago.

Although he was reluctant to make any further projection, Pinca would not discount the possibility that flour prices could reach as high as P900/25 kg bag.

Historically, flour prices have reached a high of almost P1,000 per 25 kg bag in 2008.

As a consequence, Pinca warned that local bread prices would continue to rise.

Based on bakers’ calculations, a P40 increase in the price of flour would result in a P1 increase in the price of loaf bread and for a 50-centavo increase in the price of 10 pieces of pandesal.

Reaction:
According to what I have read in the internet there are certain impacts with regards to the increase of food that would be if food prices increase there would also be a possibility that fuels will also increase because they are highly correlated with each other, economic growth in some large developing countries is leading to changes in diet and increased demand for food crops, etc,. by this certain impacts many drivers, consumers and producers will react about this situation its because "konti na nga ang pera na natatanggap sa kanilang pasada pati na sa pagtitinda tapos babawasan pa sila ng tax tapos tataas pa ang gasolina at pambili ng pagkain, paano sila makakaraos nito,diba?".  They should think what's best for the good of others "hindi na sapat ang pambili nilang pagkain" so in the end it will lead to malnutrition and cause of death.   I recommend that they would have feeding programs so that they could address the nutritional status including the pregnant women and also the kids who couldn't eat as much as those who are in the high standards.  Help those who are in need especially those who needs food to feed their children.  And also by donating some can goods, noodles, etc, or giving them 1 month supply for them to eat so that they could not die just because of hunger, right?.  The government should think of this possibilities for a better improvement of the country.

Transportation board: Taxi operators, drivers can delay new fare

Sunday, January 9, 2011

TAXI operators and drivers in Davao City have the option to delay the implementation of the fare increase granted by the Land Transportation Franchising and Regulatory Board (LTFRB), an official said Sunday.

Benjamin Go, LTFRB-Davao Region director, told Sun.Star Davao Sunday that since charging of the new fare has no deadline for the operators and drivers to comply with, they have the prerogative to either immediately implement it or not.

The newly approved taxi fare -- a flag-down rate of P40 from P30 and a charge of P3.50 from P2.50 for the succeeding 300 meters -- will take effect on January 21, 15 days after it was published on January 7.

Davao-based taxi companies had requested the LTFRB-Davao Region on January 4 for a different fare hike in the city as they are only seeking P0.50 increase for the succeeding 300 meters.

Go said they had sent the request to LTFRB central office, but this was junked by the board.

LTFRB ruled that the taxi fare hike will be uniformly implemented except for Baguio City.

Go said that it might take around six months before taxi operators and drivers can uniformly charge the new fare.

After the new fare hike was granted, several of the city's taxi drivers expressed apprehension this will adversely affect their income because of the dwindling number of passengers who can no longer afford the new rate.

"They all have to obey the fare hike, but since there's no deadline, maybe some operators will just take their time and will not immediately comply with the new rate," Go said.

LTFRB emphasized that taxi operators can avail of the increase only if they can provide the two requirements -- the receipt-issuing meter and three sets of uniform for their drivers, which Go believes are a bit harder for them to comply with.

"Basin tuyuon nila na pag dugay (They might intentionally delay the implementation of the new fare)," Go said.(Jereco O. Paloma)

Published in the Sun.Star Davao newspaper on January 10, 2011.

source: http://www.sunstar.com.ph/davao/local-news/transportation-board-taxi-operators-drivers-can-delay-new-fare

REACTION:

Nowadays, people are so deprive from their work that they spent all morning just to finish what they have done. They do this just to feed their family.  Come to think of it, increasing tax fare would be another problem for the drivers because people won't ride taxi's because of the increase of fare by 40.  One of my relatives told me that they have that some of the taxi's have alternating methods because they cannot accommodate some taxi's to issue their meter.  Another problem would be both is that people will force to ride on jeepneys because of the increase of flag-down.  Jeepneys driver might have a higher income compared to the taxi drivers.  Taxi driver might increase their income during rainy season because people also are forced to ride on taxi's because of the heavy rain so that they can reached their houses.  But once their would be no rain and it's sunny then people will ride on a jeep and that would be a bad part for the taxi drivers.

I think that they would just retain the flag-down of their rate to 30, so that, some people can afford  to it.  It wouldn't be a hassle in their part.  So, taxi drivers can have enough extra income to bring to their families when they got home, because the part that they have been doing is so difficult because they have to wake up early just to meet their passengers to go to their destinations.  The government should be aware that they are doing the best that they can even if it is difficult for them to earn.