Sinasabi ko na nga ba e (Big 3 Oil Companies)

**carchase** · June 23rd, 2009 08:45 AM

Originally Posted by tidus1203

For me Recto is a good senator. Sacrificing his political career for the economic future of this country!

Not a lot of politician would do that!

Kaya lang isa sya sa nagimposed ng 12% vat, kaya di nanalong senator!

**marco624** · June 23rd, 2009 09:05 AM

I believe the energy sec is an *******, he doesn't have an idea what he's doing, he shouldn't be in that position in the first place.

The big 3 are in the business of making money. We can complain of course, but that's it. If you think the oil companies are cheating you of your hard earned money, then, don't buy from them. Look for other alternatives. Sad to say, there are few. We are hostaged by oil producing countries and we can't do anything about it. The gov't has to do something to get revenue from this oil companies, and that's the VAT, and being a passive tax at that, it is just being passed on to US, the people. What can we do? Complain? Heck I won't do that. Because the VAT that the govt is levying on those oil companies are working to our favor(though not all of it, some are lost to corruption, and that is a fact). Imagine, if the govt scrapped that tax altogether, saan kaya mamumulot ng pera ang gobyerno para ipantustos sa pagpapatakbo ng gobyerno at paghahatid ng mga basic services? Hindi naman siguro magtratrabaho ng libre yung mga nagwewelga at nagrereklamo para makatulong sa gobyerno di ba?

Just my 2 cents

**H1Tman** · June 23rd, 2009 09:35 AM

The government cannot remove the VAT because it needs to collect more money for creditors? My goodness, why can't the goverment run after tax evaders instead? smugglers? corrupt government officials? Mas malaki pa sa 12% VAT yan mga bro!

What the status quo is doing is tolerating the greed. Ensuring more money for corruption. Kaya nga namimigay ng P500 sa mahirap e. Balato!

**CVT** · June 23rd, 2009 09:40 AM

Kung sana wala o halos walang magnanakaw sa gobyerno,- baka mas mababa ang VAT na babayaran natin, o kung hindi man, ay mas magagandang serbisyo ang matatanggap natin,- roads, infrastructures, telecommunication>>> job opportunities, better economy...., while maintaining our credible credit standing in the international arena....

Ang sagot sa lahat ng ito ay 'good governance'.....

8101:oops2:

**tidus1203** · June 23rd, 2009 09:59 AM

I do agree that corruption can save a lot but with any bureaucratic system, corruption is very hard to root out! Kung baga corruption is part of the "cost of doing business" este "doing governance"

**boybi** · June 23rd, 2009 10:39 AM

I'm in the basic food commodities trading business. Like the big oil companies, I deal with daily, and sometimes hourly, price fluctuations. I have to adjust my selling prices according to the 'prevailing price for the day', not based on the cost of my current inventory.

If there's an increase in prices today, I'll have to also increase my selling price. It is not taking advantage of the price increase, as what most would think, but to augment my capital for my next pruchase.

Example:
I bought 10 kilos of cooking oil yesterday for P40.00/kilo. I sell it at P41.00/kilo. Today, my purchase price increased to P41.00 and I still have 5 kilos left in my inventory (which I bought for only P40.00/kilo). I cannot sell my remaining stocks at P41.00/kilo because my next purchase would be the same as my selling price. And malulugi ako because I still have to factor in my OPEX.

Also, pagbumaba naman ang purchase price, I'll have to adjust my selling price accordingly. If not, wala naman bibili sa akin dahil for sure, yung competitor ko magbababa na ng price.

Now to the big oil companies. Yung sa akin is very small scale lang kasi. I don't need to have a very big inventory. If I ran out, my supplier is just a phone call away and my stocks can be delivered the next day.

The big oil companies need to have a couple of months' inventory in hand, and orders should also be placed months ahead. For my case, I can adjust prices on a daily basis because maliit lang inventory ko. Oil companies cannot do this.

Their current inventory's cost was based on the prevailing market price months before. So kung mataas nilang nakuha yun, and bumaba ang prices today, hindi talaga sila agad makapag baba ng price. If mababa naman nila nabili, and tumataas ang trend, kelangan nila sumunod sa current price dahil they will need more capital to source the higher priced oil today.

Ang hindi lang maganda tignan sa mga ito is bakit sabay sabay sila magtaas and magbaba ng price and parepareho ang rate of increase/decrease e sigurado naman hindi sila sabay sabay nagbook ng mga orders nila.

Kaya ang dapat mino-monitor dito is their inventory. When was it ordered, when was it delivered, how much was the cost, and how much inventory was left when they increased their pump prices.

Hwag po natin masyadong inaaway sila uls and Tidus. They're just giving their opinions just like everyone else.

**uls** · June 23rd, 2009 10:49 AM

this is my post from page 2:

you buy from suppliers who change their prices by the minute, while you have to keep the price of your products steady for a whole week

you hold your breath and hope the price of the raw material won't go so high that your current earnings may not cover the cost of paying for your next order

to cover rising cost of future orders, you raise your prices now so you would have a safety margin

then you get accused of profiteering

you're just trying to run a business

this is from Sir Boybi's post:

I'm in the basic food commodities trading business. Like the big oil companies, I deal with daily, and sometimes hourly, price fluctuations. I have to adjust my selling prices according to the 'prevailing price for the day', not based on the cost of my current inventory.

If there's an increase in prices today, I'll have to also increase my selling price. It is not taking advantage of the price increase, as what most would think, but to augment my capital for my next pruchase.

**_Qwerty_** · June 23rd, 2009 10:52 AM

hindi ba unfair yun?? binili mo nang mura tapos i a adjust mo na agad ang prices to reflect the current prices?? dapat ubusin mo muna yung nabili mo nang mura.. bago mo i adjust.. hindi naman yata dahilan yung wala ka nang pambili nung mga susunod na inventory kasi mataas na yung presyo.. tapos pag bumaba naman.. hindi mo naman agad mababaan kasi ang dahilan naman eh mataas mo nabili..

**uls** · June 23rd, 2009 11:13 AM

people do not go into business to lose money... or just to break even

kung may sari sari store ka...

bumili ka ng de lata sardinas at P10.00 each, binebenta mo ng P11.00

then naubos na ang stock mo, pumunta ka sa tindahan na binibilhan mo ng sardinas, and you see the price is already P11.00

paano na?

**Alpha_One** · June 23rd, 2009 11:56 AM

Originally Posted by _Qwerty_

hindi ba unfair yun?? binili mo nang mura tapos i a adjust mo na agad ang prices to reflect the current prices?? dapat ubusin mo muna yung nabili mo nang mura.. bago mo i adjust.. hindi naman yata dahilan yung wala ka nang pambili nung mga susunod na inventory kasi mataas na yung presyo.. tapos pag bumaba naman.. hindi mo naman agad mababaan kasi ang dahilan naman eh mataas mo nabili..

Let's look at it the other way around: prices suddenly go down and you've still got plenty of stocks left that were bought at much higher costs.

What'll you do? Keep the prices at the previous high price? Other sellers, who have bought at the new lower prices will be selling at lower prices. People will stop buying from you and you never get to sell your stock, which you continue to pay for because it's still in your inventory.

You'd lower your prices, take the hit, the sooner you can get rid of the "expensive" old stock the sooner you can get some money back to acquire the new, cheaper stuff that you can sell for profit again.

Market prices are determined by what buyers are willing to pay for and sellers are willing to sell at now, not yesterday, not tomorrow.