Jul 31, 2008
In perhaps what is a piece of good news over the last couple of months, countries such as Malaysia, the Philippines and South Korea are contemplating on reducing oil prices soon. This is considering the current oil prices continue to decrease though. In the past weeks, the global price of oil in the market has been falling and this is good news for the world that has to survive in these hard times of high oil prices.
But while that is a great sign, local distributors still have the last say. There are some local oil companies that have been thinking twice about on whether to cut down oil prices since they are still wary of deficits and losses to which they would want to make up for. The thing is, are these claims legitimate enough to hang on to the current oil prices?
Consumers have called for government intervention to make necessary measures in auditing the books of these local oil distributors. Apparently it seems that this is the logical way to go to certify the claims that they are indeed on the red. And while that is the case, don’t expect the consumers to be as understanding.
On the side of developing alternative fuel, they should not stop. Providing alternative source of fuel is something that can still be beneficial regardless if the current oil prices do go down to manageable levels for consumers. Biodiesel and ethanol alternative still pose a good choice for people especially since they are a lot cheaper and may even cost less once regular oil sets its mark to normal.
Malaysia may reduce fuel prices in the weeks ahead if global oil prices continue to fall, a senior finance ministry official said Thursday.
The government hiked petrol prices 41 percent in June to ease the burden of spiralling energy subsidies, but crude oil prices have fallen around 20 dollars from record highs above 147 dollars per barrel hit earlier in July.
The official said “if oil prices remain between 120 dollars a barrel and 125 dollars a barrel for two weeks,” then Prime Minister Abdullah Ahmad Badawi could announce a cut in fuel costs in the weeks ahead.
Jul 30, 2008
If you think private vehicle owners are the only ones who are being hit by the oil crisis, guess again. Even truckers are feeling the pinch of the oil hikes and this will eventually affect the market of consumer goods. Truckers are responsible for transporting goods from one state to another and with oil prices continuing to go beyond manageable prices, transportation costs are sure to escalate as well. And we all know that once that happens, the cost of consumer goods are bound to follow.
In fact, truckers have brought this issue to the attention of the Bush administration, calling for a comprehensive energy plan to ensure that there will be sufficient oil supply to be made available for trucking that play an integral role in the world of consumerism.
“This is a big problem that requires a big solution,” Windsor said. “Trucking delivers America. Trucks transport virtually 100 percent of groceries, medicine, clothing, appliances and even the fuel that’s pumped at the local gas station. Rising fuel prices not only hurt the trucking industry, but the entire American economy.”
But is it all in the hands of the government? Supplying oil is one thing but the groups responsible for stocking and distributing oil is something that will surely need to be addressed as well. The government can rant and intervene all they want but eventually it will be up to the oil companies.
We feel the effects of oil prices rising these days. Consumer goods are rising beyond sane levels and apparently this has been something that any average consumer is dreading. Its not like companies have a choice. Transportation costs are included in bringing products towards the supermarket shelves for consumers to buy. In all of this, transportation is important to distribute products in the marketing mix. But with fuel becoming a problem in bringing these goods to the proper markets, one can imagine when consumer goods will have their share of distribution problems in the long run.
Jul 28, 2008
One month after the crude oil prices reached an all-time high per barrel price, we are slowly witnessing the incremental decline in pricing which is something that will surely bring a big sigh of relief to people who are getting worried about the rising cost of gasoline and petroleum products. But while they are eyesores, it remains that no one can remain complacent. This should be seen as a temporary reprieve as another price spike can occur anytime.
The development of hybrid cars, ethanol fuel and biofuel should not stop. Groups which had already started out with them must continue the developing of these alternative fuel products if we are to be prepared the next time that this may happen.
Apparently, there are issues such as compatibility to the car engines we have. Hybrid cars are a great recourse but seriously, you don’t really think everyone can afford one in lieu of their old hand cars. It should be remembered that while these cars are seen as alternatives, they can also be heavy on the pocket. And by this I guess we are all aware that the crisis does not cover oil prices alone. They cover consumer goods and services that we all need in everyday living.
This is what we can consider a chain reaction of sorts. Oil may be categorized towards that of industrial and personal transportation areas. But taken as a whole, they are interrelated. Affecting one part of the economic mix hampers the other and may not recover for some time. So to avoid a sudden burst in the long run, it would be best to be ready. We had already started developing the alternative fuel so we should stick to it and keep it handy. We just never know when another crisis may befall since they occur at times consumers least expect it.
Jul 20, 2008
The continuous increase of fuel prices is going crazy. Unlike before, 1 liter of gas could get you anywhere worthy. But these days, you will be surprised at the impact it has. It would not be surprising if you would need 1 liter of gasoline to get you out of your house gate. That is how bad it has become.
With the crude oil market continuing to skyrocket its outrageous prices, who is to blame? Many are pointing to politics while others are pointing towards the lackadaisical consumer who could care less of how to save on gas. Perhaps it has been the common thinking that anyone, as long as they have money, could burn fuel as they wish. Apparently, all that is about to come to an abrupt end and people are now acknowledging hard times ahead.
So how do we go about it? There are alternatives. We have heard of the much celebrated LPG conversion for cars which is approximately half the price of modern day fuel. But it has its fallbacks such as skin and health diseases from leaks. Besides, what makes you so sure that they will not reach the point of scarcity like normal fuel?
Then there are the natural fuel from crops such as algae and fossil fuel. But in their case, how compatible are they with the car engines of vehicles today? And again, how long would they last.
These are the questions that are going around the motorist’s mind. If you satisfy the fuel issue, how about the car maintenance issue? These are things this blog will discuss in detail and hopefully help out the motorists to continue enjoying their daily private car use.