MOST disturbing among our issues today is the unabated rise in gas prices and the accompanying rise in prices of basic commodities and essential goods and, of course, the inevitable inflation.
The purchasing power of our peso definitely dilutes and is felt most by the daily wage earners.
Even the Department of Energy, the agency tasked to monitor gas prices and suggest solutions towards the crisis is helpless in the midst of ascending global rates. It says our local gas prices are dependent on world rates!
The DOE lacks control power over the movement of oil pricing and, therefore, hopes to only see the suspension of the excise taxes under the Tax Reform Acceleration and Inclusion Act as probably one of the measures to stem or temper at least oil price hikes.
The effect of the suspension of the imposition of the excise tax is massive on our income generation and will have a domino effect on our market forces. It is therefore prudent for our authorities to study closely on whether or not to suspend.
We have been dependent for so long on oil-producing countries including those from OPEC. As of last report, Brent crude oil prices range from $90 to $120 per barrel.
The DOE assures that in terms of supply, the country will not experience any disruption because it does not directly import oil from the warring Russia and Ukraine.
It announced: There is limited impact on actual supply disruption due to sanctions on Russia which is now in conflict with Ukraine.
So, we have to brace ourselves for more gas/oil price increases and not rely on DOE for comfort as it is helpless on price increases.
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Whatever happened to our search for other sources of energy? News went out that some time ago that we discovered oil deposits somewhere in addition to Malampaya which has been sold to private interests. What then should our government do to our worsening energy supply and the ever-increasing gas prices?
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With this scenario, how would the present administration address the worsening situation regarding gas prices? Well...