Palace defends EO on fuel price freeze

[ghosthunter]

Because smuggling fuel in is more profitable? :hysterical:

hey, why pay the middle man when you can take it directly to the consumer?

[niky]

They'll lose money, of course... slowly, but they will lose. It depends on what their overhead is.

If they stop selling completely, their stations will suffer... but most of these are franchise stations, so the mother corporations might not care as much, and could leave them to hang out to dry.

It's the franchise owners who will suffer most, really, in any event. There are already so many stations that have closed, changed franchises or changed owners over the past year due to financial difficulties... with or without this EO, economic instability post-typhoon might force some of these smaller stations to close entirely... putting even more small Filipino entrepreneurs, as well as their employees, out of work.

[ghosthunter]

Well, let's see who gets to blink first. If the Big 3 oil companies are sure to lose money over the EO, they'd probably stop selling right away rather than risk further losses.

The big three would probably limit deliveries so an artificial fuel shortage in certain areas will occur.

[CVT]

Rollback ngayon dito ang mga presyo ng krudo at gasolina sa Paranaque area,- kasama na ang Big3....

8800:juggle:

[Monseratto]

We'll soon find out in a month. Too bad if this shortage happens during the Christmas season. It's the small players who are the 1st to stop importing. It will probably take a few more months for supply to normalize if the EO forces the companies to turn off the tap. GMA is playing a dangerous game that will affect the economy.

MANILA, Philippines—Oil companies said they would follow a Malacañang order to bring down fuel prices to their levels 12 days ago, but warned of a possible supply shortage.

“We will comply. We have no choice, but [the executive order] has serious implications not only to the supply of products in the country, but also to investments,” Edgar Chua, country chair of Shell companies in the Philippines, said at Monday’s meeting with officials of the Department of Energy (DoE).

Fer Martinez, president of Eastern Petroleum, said the industry’s fuel supply would be threatened because of the order.

“Already, Flying V Philippines and Total Philippines said they are canceling their importation [of petroleum products]. That’s dangerous, when people stop selling,” he said.



Flying V has declared that it will sell whatever stocks it has and will only import petroleum products again until the EO is lifted. The company normally has an inventory of 15 to 21 days.

[tidus1203]

Ang nakakapaghinayang she's an economist pero as always pulitika muna bago ekonomiya. Its good for your political career to be a populist!

[niky]

We'll see. This will all depend on oil prices in the coming months...

Of course... given that our government has decided to put its foot down at a time when oil prices have breached the $80 a barrel marker... it's not encouraging... not encouraging at all.



I think some of the gas companies have been caught selling old stock at the new price (as they always do... ), thus, their ability to lower prices right away... but come next week, who knows what will happen?

Ang nakakapaghinayang she's an economist pero as always pulitika muna bago ekonomiya. Its good for your political career to be a populist!

Yup... it's easy to be "makatao" if you're making other people pay for your actions. Oil ain't going to fall from the sky... eventually... someone's going to have to pay for the going rate... and if the companies decide they won't be able to sell for a profit... or even break-even... they'll just cash in their chips and hang us out to dry.

I can see it now... hundreds upon hundreds of small gas stations going out of business just in time for Christmas... people on bicycles... no cars on the road, so no more tax money for the government... ain't life grand?

[Monseratto]

Better keep your tanks full in the meantime... and maximize your economy drive.

[ghosthunter]

one important fact to remember is that the oil companies have only about a week's worth of supply. So expect some gas pumps to run dry next week.

Makes me think, should I also fill up my petrol tank along with my Auto-LPG tank?

[ghosthunter]

I can see it now... hundreds upon hundreds of small gas stations going out of business just in time for Christmas... people on bicycles... no cars on the road, so no more tax money for the government... ain't life grand?

...and Niky zooming past them in his Auto-LPG fueled car.