Boycott the Big Four (Petron, Shell, Chevron, Total)= Cheaper Local Oil Prices?

[jpdm]

A few days ago a local think tank released their findings and said that local oil prices are overpriced by as much as 12 pesos per liter.

One e-mail circulating around mentioned that in order to compel local oil companies (even if they will vehemently deny it, they are nothing but a bunch of rotten profiteering oligopoly) to lower the local oil prices, we need to boycott and stop buying from the multinationals (Petron-Asshole este Ashmore-British;Shell-Dutch-British; Chevron-US; Totalfinaelf-France) which control more than 90% of the local petroleum market.

The oil deregulation law became just a piece of toilet paper full of s#t because of these oligopolists.

But we should not stop buying gas...we should only buy gas from local companies (hwag Eastern Petroleum-it acts as the errand boy of the Big Three) that provide some relief to inflation battered Pinoy motorists...

Less demand would mean losses for them and theyl be forced to bring their prices also....

What do you think?

[_Cathy_]

jpdm, is it possible for you to post that email? I wanna read it lang. Thanks

[Jun aka Pekto]

A few days ago a local think tank released their findings and said that local oil prices are overpriced by as much as 12 pesos per liter.

One e-mail circulating around mentioned that in order to compel local oil companies (even if they will vehemently deny it, they are nothing but a bunch of rotten profiteering oligopoly) to lower the local oil prices, we need to boycott and stop buying from the multinationals (Petron-Asshole este Ashmore-British;Shell-Dutch-British; Chevron-US; Totalfinaelf-France) which control more than 90% of the local petroleum market.

The oil deregulation law became just a piece of toilet paper full of s#t because of these oligopolists.

But we should not stop buying gas...we should only buy gas from local companies (hwag Eastern Petroleum-it acts as the errand boy of the Big Three) that provide some relief to inflation battered Pinoy motorists...

Less demand would mean losses for them and theyl be forced to bring their prices also....

What do you think?

Boycott +90% of gas........ Sounds idealistic. But, what happens when the -10% is used up and their suppliers can't keep up with demand? Higher prices and back to square 1. All the Top 4 have to do is sit still and watch the masses come groveling back.

Isn't a class-action lawsuit or even government intervention possible?

I'm pretty sure the anarchists would love nothing more than to stir unrest... pretty ripe for one during times like these.

I'm surprised I haven't seen more red banners/hammer and sickles around.....

[1D4LV]

i think the report is from the IBON foundation.
can you also send me that email?
vladyderamos*gmail.com

[Monseratto]

i think the report is from the IBON foundation.
can you also send me that email?
vladyderamos*gmail.com

IBON Foundation is a known leftist think tank. Its fantastic solution to the oil price hike is the abolition of the oil deregulation law and the goverment control of oil prices. Best thing is not to give too much attention to them...

A country that advocates price control is Zimbabwe. Unfortunately it's inflation rate is 70 million percent because no one wants to do business with them. Exchange rate 20 billion Zimbabwe Dollar=US$ 1.00.

[CVT]

All of us have been swamped with the weekly increases in the prices of gasoline (and all other things.... )...

If it makes sense to me, I will support it.

6404:pump:

[CVT]

All of us have been swamped with the weekly increases in the prices of gasoline (and all other things.... )...

If it makes sense to me, I will support it.

6404:pump:

[tidus1203]

If they are profeetering and that can be proven then I support boycott of the BIG 3 but if people want price controls I am totally against any forms of price controls as mentioned above it will be like Zimbabwe.

[[archie]]

gandang idea but still think if those big four would not do business here, then the local distributors of oil will have the power to up or down prices.

same sh*t IMO.

my 2 cents

[uls]

it wont work. That boycott suggestion has been going around for ages.

dati pa yan noong wala pa P40 ang gas.

First u got to get enough people to cooperate -- individual motorists, companies with large fleets of vehicles, industries that order fuel in bulk, local government, national government...

sige good luck... balitaan nyo nalang ako if u succeed in getting all those consumers to cooperate.

And even if u get people to cooperate, and everyone buys fuel from the smaller players, what happens when they run out of stockpiles?

Saan sila kukuha ng stock nang madalian?

Kanino pa? Eh sa oil companies na madaming stock. Yung mga binoycott nyo.

it won't work. i'll bet all my Tcash it won't work.

---------------

Ibon foundation is a bunch of leftists. I don't know why anyone takes them seriously.

---------------

Price controls is economic suicide.

Better to have expensive fuel to buy than no fuel to buy.

[froshie1]

This won't work. Babaan lang ang pagconsume ng gas. Kung ganun pa rin consumption sa mga small players tataas pa rin yan.

[Monseratto]

The local oil players don't have the refining capacity, they lack the funds and they don't have the network.

[uls]

Mas mahihirapan tayo pag ung mga oil companies ang mag boycott sa atin

hehe

[jpdm]

The local oil players don't have the refining capacity, they lack the funds and they don't have the network.

Local oil companies do not refine their oil. They directly buy from refineries abroad. Petron and Shell are the only remaining local refiners. a portion of the local demand for oil is served by the two. All are importers of finished petrol products.

As much as the want to put up refineries, they cant they lack local customers.

Petron controls 40% of the market. Shell around 37%. Chevron 16%. The rest Total (France), Seaoil, Flying V, Eastern Petroleum, Unioil, PTT (Thailand), Filoil, Jetti and others (Argo, Express, Pioneer, etc..).

Local players cannot make a dent on the market hold of these big oligopolists because these multinationals have overwhelming number of gas stations. Despite of, one way or another within the vicinity a local oil player is waiting for customers that come in trickles unlike the customers of the big four.

Let us reverse the market condition ( I mean do it slowly go now to those numerous local oil players), at least 50 percent small players and 50 percent the big four, I believe something will definite change.

By the way, in the US prices of oil is about 3.90 per gallon or 45 pesos per liter. Di ba mas mahal gas dito?Regardless if IBON is deemed as leftist, I think they are tellin the truth.

I think also the idea is feasible because there is no civil disobedience here. Its a plain change of taste and preferences...Sa basic economics, its a non-price factor of demand....it will also change the supply because we are goin to patronize other sellers in the market, another non-price factor of supply..

PS

The email was send to me by a guy working in one of the prestigious think tanks of the government.

[boybi]

Mas mahihirapan tayo pag ung mga oil companies ang mag boycott sa atin

hehe

I have been thinking about that. What if one day, sa tindi ng mga rallies in front of the headquarters of these oil companies, e bigla nalang silang magstop sa pagbenta ng oil? Kesa magpalugi sila kung pababain nila price ng oil e hwag nalang silang magbenta? Di ba mas malaking chaos ito?

[jpdm]

Mas mahihirapan tayo pag ung mga oil companies ang mag boycott sa atin

hehe

I disagree.

The reduction of the 1% tariff on oil was meant for the other oil players...Its an incentive for them to buy more and lessen the cost of importing oil.

This is a deregulated market. Anyone can put up an oil company. Gas stations nowadays come and go...if one gas station fold up a new one arises from the same location with a different brand...

So when you say oil companies, hindi na yung mga buwitreng Petron, Shell Total and Chevron..

Lets help bring down this oligopoly and from the its ashes a better oil buyers market with more competition....

By the way I have switched to Seaoil and Flying V for their biodiesel.

[Tailhook]

The Oil Deregulation Law was meant to create a free market economy. The oil players are supposed to compete and out-maneuver each other to gain loyal customers through the lowering of prices. Instead, what we get is synchronized swimming....ah este... synchronized pricing. Shameless capitalists.

Although they have varying oil inventories bought at different dates, hence different prices, yet they price their products the same. Obviously, the pricing is no longer dictated by the true cost of the product and some reasonable profit, but are priced at how much the market will bear. notice they decreased the price of petrol last week by one peso while increasing the price of diesel. That's because they got stung with the sudden decrease in petrol sales (5% lower sales i think). They did not do the same with diesel since diesel users (bus, trucks, jeepneys) had no choice but to buy, unlike the petrol users (predominantly private vehicles) some of whom chose to ride the mrt/lrt/buses and ended up gassing up their vehicles less.

Sometimes I wonder how oil executives can sleep soundly knowing that they are squeezing the life out of us. COme to think of it, its not really that difficult to do what with a six or seven figure salary, travel incentives, a 5 or 7 series BMW or C or even E class merc parked at one of their many posh mansions inside a gated enclave. Whew. Life must be really tough for them. How I wish I can get my hands on one of them and beat the heck out of them poor b*st*rds. eh...rich b*st*rds pala. gggrrrrrrr....

I feel like being stabbed in the back each time I fuel up.

[Jun aka Pekto]

The Oil Deregulation Law was meant to create a free market economy. The oil players are supposed to compete and out-maneuver each other to gain loyal customers through the lowering of prices. Instead, what we get is synchronized swimming....ah este... synchronized pricing. Shameless capitalists. .

Are there any news articles explaining why the prices at Philippine gas pumps are so high?

Here, I'm trying to figure out why our gas prices are much lower than the national average. The only reason I found so far is because our source of gasoline is the state of New Mexico which is right next door. The city average is still $3.81/gal (P45.24/liter). But, many gas stations have it much lower. Arco for instance has it at $3.71/gal (P44.05/liter). $1~P45

OT
I do see a trend here though. I noticed gas prices are higher for gas stations right by the interstate while they're lower farther away and within city limits. The local folks pay less while visitors passing through pay more.

Here, they do compete. But, I think there's an anti-price war ordnance in effect though. That's why cops are ready to impound those gas stations who price too low.

[redorange]

*JPDM--The deregulation was meant to create competition in the market to control the prices as opposed to government regulating the prices which creates an artificial low price of fuel. You state that the US has fuel at $3.90 per gallon but fail to mention that the prices are not regulated and can be different from station to station with in blocks of each other by as much as $.20 per gallon. Unfortunately for the Philippines all the oil companies get their oil/fuel from the same area causing all of them to have the same landed cost once imported. If there was a more diversified source for the oil/fuel imported into the country you could have differing cost of importation thus different prices at the pump like the US where there are different sources for oil/fuel.

*Jun--You still have $3.** per gallon gas!!! Heck, here on base it's $4.28 and off base it's $4.92 per gallon. How I wish I still had $3.** gas. Come to think of it just a year ago we had $2.87 gas on base.

[jpdm]

Are there any news articles explaining why the prices at Philippine gas pumps are so high?

Supposedly, the oil deregulation law will allow the invisible hand of the market to peg the real price of oil in the country. Unlike before, with the OPSF, oil is subsidized by the government plus the dominance of Petron, a wholly-owned government (through PNOC) controlled oil company.

But the problem is, the oligopoly is already here. Its hard to break it up. In fact it took many years before Total was allowed to put up a gas station in both expressway-North and South because perhaps there is a pressure from the big three not to allow anyone except them to put up establishments there.

This is the reason why even small players have to play the game of the multinationals, including our very own but has betrayed us Petron Corp.

Notice the behavior of Eastern Petroleum, it acts as if its part of the oligopoly.

There is price fixing, there is a collusion between oil companies.

Although I see, Seaoil, Flying V and even Jetti and other small players are selling below the price of the oligopoly. I see them to be more sensitive to the Pinoy pulse.

Nevertheless, the only way to break the oligopoly is to let the market work--by exercising our power to choose. Gas up at local gas stations and bring down the sales of these vultures, we will see the difference.

Mahal mag-maintain ng malaking gas station like the ones selling the products of the big four. mawala lang kalahati ng customer nila sa isang araw sarado mga yan.

This will then give more revenues to local oil companies and might embolden them not to collude with the oligopoly.

At least local oil companies will be more sensitive to Pinoy needs kumpara sa mga mukhang perang multinationals na yan tulad ng KFC...(opps ibang issue pala yun)

Again, the recent roll back of gasoline prices is one good example.

Nga pala, yung EVAT ni Gloria makes oil very expensive also.Plus tariff.