Everyone is feeling pain at the pump these days.
It’s the new crisis we are facing –only it’s no longer a health crisis but an economic one.
Gas prices are currently rising, which isn’t surprising since the oil demand is incredibly high while supply is tight, as well as regional conflicts that affect the global fuel supply and market. We can expect that the gas price will continue to rise before it falls, and what we need to do right now is to ride through the current costs. The question is, how can we survive (and save money during) the continued fuel increase?
Everyone is currently experiencing the pain of gas price increase, and it’s getting many people riled up. It not just the Philippines. It’s a global crisis.
Some people think politics is again the cause of gas prices, enough that many people are blaming government for the recent price hike. The issue on excise tax is brought to the table again. However, we must be realistic in admitting that it has always been supply-and-demand that affects the price of crude oil. So let’s put politics aside. The whole world is affected. It’s just not us.
In simple explanation, it is the high demand for gas and the current low supply that drives gas prices upward. Gasoline and diesel come from crude oil, a natural resource that has been much affected throughout the pandemic. Because the pandemic made it so that fewer people were driving, major oil companies decided to reduce production.
However, due to a lot of people getting vaccinated, the world started to lift restrictions. As a result, there is a sudden rise of people buying gas, but there is not enough supply.
Another global concern that will affect fuel prices in 2022 is the Russian invasion of Ukraine. Possible sanctions against Russian fuel exports are looming, however, as of the date of invasion, no fuel-related sanctions have been placed.
Now, the best thing to do at this times is to plan one’s movement and minimise use of fuel. Tighten the belt and stop whining.
