Contented with good reasons

TEMPORARY AFTER-EFFECT OF THE OIL PRICE IRREGULARITY – Energy officials should always keep a close check on issues related to oil imports because the country has for months been resigned to the fact that prices of gasoline, diesel fuel and other refined petroleum products rose slowly but steadily. Say what the critics and political detractors will but the country would remain always unprotected from price variability because of its heavy reliance on imported oil products. Nonetheless, at this stage the Aquino leadership, captains of trade and industry, the business sector and in particular the different transport organizations are pleased and with good reasons.
The fuel-dependent sectors so far weathered the oil price fluctuation as a result of a series of oil price roll back during the past weeks. The price of gasoline right now is down to P50-51 per liter from the previous P56-58 some three weeks ago while crude oil was down to P41 per liter from the previous P43. Some private economists and government financial analysts think the series of oil price roll back might seem especially soothing to top government executives because of the softer and lower oil prices in the world market. But come to think of it that the freckle oil price movement hinge on the world price index therefore a slight variation could change the statistics.
Of course, even if the positive impact of the low prices of oil products on commercial and industrial activities may lead to improving the economic growth of the country, it may however not last for long. Other noted economists and financial managers are more unenthusiastic still, predicting that the series of oil price roll back is only a temporary after-effect of the price irregularity in the world market. Furthermore, it is also widely believed that the government will have no choice but to move every able body it can – meaning the country’s working population to the most competitive and productive ways possible while the prices of oil continues to drop radically in the days ahead. Still, it might get harder to muddle through in the future, since there are indications that the most important thing to watch is the unprecedented oil price increases dictated by the oil-producing countries.
All of which means that we always have to be prepared and remain alert at all times, because even boosted by lower prices at this point, prices of fuel products are expected to increase on or before the second quarter of the year. Right now, the series of price roll back has taken center stage just like when prices likewise skyrocketed to undetermined level. While the country’s oil companies notably the so-called the “Big Three”- Petron, Shell and Chevron together with the small players reported with assurance that more price roll backs are expected in the days ahead, government on the other hand should not take the assertion as a permanent commitment. As always expected that when it comes to oil prices hike trend, the government suffers from what can be called a reliability and credibility problem of its own.
Independent economists and business analysts foresee the series of oil price roll back will slow down or stop anytime soon. Government therefore should not let its guards down because when the series of price roll back are over, we will be back again to a vicious cycle of oil price hike. So what kind of assurance the powerful oil cartel is bragging about? We always have to bear in mind there is no such thing as a never-ending oil price roll back and government should treat the current pricing trend as a temporary breather to map new strategies anytime prices of oil products would continue again moving upward. If that happens – anytime soon, there’s nothing we can do about it because we are perennially dependent on oil imports – a perpetual burden confronting the country and its economic activities.