racoma.com.phJ. Angelo Racoma on technology, economics, writing, problogging, and getting things done

It was only a few months ago that I realized gas prices in the Philippines are increasing every week. It was somewhat stable at ~ PhP 46 per liter for the unleaded variety (price is higher for leaded, and diesel is cheaper by about PhP 8 per liter). But then the oil companies have implemented a weekly increase scheme, where they increase pump prices anywhere from PhP 0.50 to PhP 1.50 per liter either midnight or 6 a.m. of each Saturday.

And so as of this week, unleaded fuel costs about PhP 61 per liter, while diesel is about PhP 55 per liter.

I use Petron Blaze, which is the highest octane gas here. It’s among the most expensive varieties, too, at about PhP 1.50 to PhP 2 higher per liter (usually close to the price of Shell’s V-Power). So these days I usually gas up every Friday evening. I didn’t use to fill ‘er up with a full tank, but today’s situation calls for it. Filling up your tank can be more efficient since opening the cap too much causes fuel to evaporate.

But I’ve heard from a reliable source that gas prices will be PhP 80 per liter soon. The oil companies are trying to recoup losses from the increasing barrel prices worldwide. And get this–the price increase is due to the law of supply and demand. Oil producers are not producing enough (either they’re not able to or they won’t), and we are increasingly in need of oil. However, I hear that the US is actually hoarding oil imported from the Middle East, even though they are capable of producing enough to sustain their needs.

So where does that leave us common folk? That PhP 80 mark is probably just around the corner. As it is, the traffic situation in the Metro has lightened considerably. People are reportedly just opting to either carpool or ride public transportation. This is good, actually, since they are thinking green. But of course the personal mobility that a private vehicle offers is something else.

Also, oil prices usually have a direct relationship with other commodity prices. So with the trends we observe, we can surmise that the cost of living will be increasingly higher in the foreseeable future.