Diesel Is Only 6% Cheaper Than Gas, Would You Still Consider Buying Diesel Vehicle?

[[archie]]

^^ at least sa news... no increase sa prices.

sorry OT ata

[tidus1203]

Yeah for the week maybe dahil lang sa pakiusap, di yan sustainable since eventually they have to catch up. The only glimmer is crude oil (the raw material) is falling but its still very high.

[Autobeat]

I haven't been paying attention to diesel prices before, until I heard in the news yesterday that there is a chance that diesel will become more expensive than gasoline. So just today I started looking at the prices. Around 2-3 pesos na lang ang difference.

I have always been at thoughts of later acquiring a diesel vehicle, but if diesel does become more expensive than gasoline, then it has definitely somehow reduced my wanting to get one now.

Maybe worth reconsidering if they start pricing the CRDi variants close to it's gasoline versions.

[tidus1203]

Time and time again I have seen many governments from all around the world who try to manipulate the markets, but esentially in the end they failed and things become worse because the market is too powerful for any entity to control. The basic principle is no one sells at a loss, NO ONE! Someone has to lose in order for someone to gain. So in other countries like Malaysia their gas is cheaper but their government is loosing a lot of money in subsidizing so again someone is losing. Same case with China.

If diesel does prove to be more expensive than gas in the LONG RUN. We should be the one's to adjust (like switiching to gas engines and converting to LPG) and not the prices because as I said the market (this being the world market) is very powerful no amount of intervention will ever supersede the market in the long run.

[slamtaz]

i dont agree with that "basic principle".
many people/corporations sell at a loss for one main reason, sustainability/survival.

for example, if an importer imports millions of summer fashion clothes from italy but failed to sell all of it before the rainy season comes. magbebenta sya at cost or even lower than import value to convert it to cash lang so as to continue to have cashflow in business.

another example, would be an individual who has experienced a tight run and sells his recently bought laptop/Plasma TV at 50% below its tag price in exchange for liquid cash.

meron kang puntos that people, companies "do" sell at a loss, but not because of survival/sustainability but because of the fact that it's just a small piece of the bigger picture.

i think that statement "no one sells at a loss" should be seen as the bigger picture... that is one reason why we have the term "allowance for probable losses". to mean that in pricing products for sale, these allowance for losses (i.e. spoilage, recalls, returns, lemons, damages, inventory clearance, or whatever people may want to call it, etc.) were almost always already factored in. so, kahit pa nalugi sa 1, 2, 3 o higit pang transaction, siguradong sa kabuuan ay meron pa ding profit na matitira.

in some cases, losses are even used as a strategy, a "cost champion" or "loss leader", to induce more sales. tama ka din na maaring ibenta ng isang ordinaryong tao ng 50% loss ang tv nya pero dahil lang sa gipit sya o emergency, pero sa pangkalahatang diskarte ng isang tao, kelangang mas malaki ang kinikita nya kaysa sa gastusin nya.

be it a company or a person, the only sustainable goal that is viable for its existence from an economic point of view is to realize a profit (i.e. not just in monetary terms but whatever is of value or that which is considered a resource). otherwise, bankrupt!

the oil companies cannot deny that if they continue to sell diesel here at a higher price. only time will tell when they'll have no market here at all.

so will it be sustainable in the long run for oil companies to force the true market here?

it is not for the oil companies to decide whether or not there should be a diesel market, it is for the government (do they have a choice?)and its people who decided the use of diesel-fed machines. the oil companies are here to supply the need because there is a demand for it. and since it is common knowledge that if the equation (i.e. whether "real or superficial") is "demand > supply", price of commodity is high.

in reality and its already been mentioned here and in other threads that, demand for diesel is really high, not just locally but worldwide. this brings us to the scenario, wherein the price of diesel in the world market is higher than gasoline and it is only in isolated local markets (i.e. considered politically/socially sensitive) where the price of diesel is artificial (translation: either subsidized by the government &/or by the price of gasoline).

now that said subsidy can't be sustained because of market forces, why blame the oil companies for it? don't you think that the govt should be blamed in part for allowing this artificial pricing to exist for so long and be inculcated and ingrained as gospel truth among its constituents?

now, whether that demand is "real or superficial" is another story... or maybe worth discussing in another thread

[tidus1203]

^^You still blame the speculators in a world of survival of the fittest. They are merely diversifying away from the the US Dollar that is always losing its value. In the world we live in where greed is the fuel of ambition and success, hungry people are the least of this people's concern...

[Algernon]

In the end, it doesn't really matter what speculative investors' motives are...economics always eventually bows down to reality. If supply goes down (or is perceived to go down) while demand stays the same or goes up, prices inevitably go up. But only to the point that consumers can take...if prices go up too much, demand will then drop which will consequently force prices back down again, or at least prevent prices from going up further. This is what we see happening now.

Of course as happy gilmore pointed out, the long term view of this is eventually the petroleum market will be phased out and eventually collapse as newer, renewable sources of fuel and energy are discovered and developed for the mass market in a sustainable way. In our current world where petroleum and other fossil fuels still have a monopoly on energy use, introduction of a viable alternative is really the only way forward. After all, as global fossil fuels become more expensive to the point that people can't really afford them anymore, they will stop being bought...it's as simple as that.

[CVT]

Bumaba ang presyo ng gasolina recently... Pero, presyo ng diesel,- hindi....

6505:Bath:

[CVT]

Bumaba ang presyo ng gasolina recently... Pero, presyo ng diesel,- hindi....

6505:Bath:

[tidus1203]

Thats because diesel is still underpriced. Dapat nga taas pa yung diesel this week while gasoline should be cut. Pero thats too unpopular kaya for now ganun na muna...