(Photo from Agence France-Presse)
Malacanang has just confirmed plans to cut tariff on oil and petroleum product imports to 2% from 3%, hoping this will cushion the blow from rising oil prices overseas. Tariff, by the way, is in layman terms simply a tax on imported products. (Err, I don’t understand why they have to invent another word for “tax” heh) Wiki explains that it is the simplest and easiest way to collect taxes since it has to be paid so the product can land on shore.
Chopping off a one-percentage-point means around 35% reduction in tariff. President Gloria Macapagal Arroyo says she is hoping this will help “every Filipino family.”
Boy, do we all need that relief. We’re all feeling the pinch, wherever we are in the world. Oil has hit $100 a few days ago, just as many price watchers feared and everyone – from the balut vendor to the bigwigs at San Miguel Corp. – will have to think of a way to deal with it. Reuters came out with an interesting article that showed how a Beijing cab driver to a vendor selling food wrapped in banana leaves in Jakarta will suffer even more if oil climbs higher to beyond $100.
But I’m sure it’s obvious to everyone that while a tariff cut of one-percentage point from 3% to 2% will “ease the pain somewhat” (words of Dr. Victor Abola of the UA&P) and "give some relief" for all of us (Nandy Aldaba, head of the Ateneo Economics Department), it is not going to be enough. Abola explained that a one-percentage point cut normally results in a 50 centavo drop in pump prices. For our household, at least, that’s only around P20 savings on gas weekly. There are other spillover effects, of course, like (hopefully) lower price of liquefied petroleum gas, which is now at more than P600 per cylinder, the type used by households.
Lower pump prices, especially for diesel, can stave off suffering of those who drive and ride jeepneys, tricycles, buses, taxis, and reduce the cost of doing business. Whether or not these savings will result in lower prices not just of food but all the other goods and services we buy on a regular basis – and when – is another matter. In the meantime, oil may continue to rise to the teeth-gritting consternation of everyone on the planet except the oil barons of oil-rich countries.
It is more and more evident that households will have to look at other direct ways to avoid getting hurt by rising oil prices instead of just looking for a tariff cut. Or even moving back to a regulated oil sector. (THAT is really silly). At least, our spending is something we can control. Maybe if we think hard enough, we can figure out at least five ways to lessen our household’s demand for oil and petroleum products.
Let me see:
1. Eat more vegetables and fruits that don’t need too much cooking. More healthy too. Seriously. Boiling beef can take at least 30 minutes even in a pressure cooker and that consumes a lot of LPG. Stay away from easy-cook noodles and canned goods, though. Getting a hit in our kidneys through bad eating habits is a serious personal finance slip-up. Kidney problems are expensive!
2. Commute if possible. Walk if possible. Thank goodness for the MRT, I can schedule meetings on off-peak hours in a mall near a train station and save the environment too. Sounds very motherhood-ish but it really does work, at least for me.
3. Use a bicycle for short distances on streets that are not too busy.
Hmm. OK, so I can think of only three. Come on, add some more. ☺
Hurting from oil prices
(Photo from Agence France-Presse)
Malacanang has just confirmed plans to cut tariff on oil and petroleum product imports to 2% from 3%, hoping this will cushion the blow from rising oil prices overseas. Tariff, by the way, is in layman terms simply a tax on imported products. (Err, I don’t understand why they have to invent another word for “tax” heh) Wiki explains that it is the simplest and easiest way to collect taxes since it has to be paid so the product can land on shore.
Chopping off a one-percentage-point means around 35% reduction in tariff. President Gloria Macapagal Arroyo says she is hoping this will help “every Filipino family.”
Boy, do we all need that relief. We’re all feeling the pinch, wherever we are in the world. Oil has hit $100 a few days ago, just as many price watchers feared and everyone – from the balut vendor to the bigwigs at San Miguel Corp. – will have to think of a way to deal with it. Reuters came out with an interesting article that showed how a Beijing cab driver to a vendor selling food wrapped in banana leaves in Jakarta will suffer even more if oil climbs higher to beyond $100.
But I’m sure it’s obvious to everyone that while a tariff cut of one-percentage point from 3% to 2% will “ease the pain somewhat” (words of Dr. Victor Abola of the UA&P) and "give some relief" for all of us (Nandy Aldaba, head of the Ateneo Economics Department), it is not going to be enough. Abola explained that a one-percentage point cut normally results in a 50 centavo drop in pump prices. For our household, at least, that’s only around P20 savings on gas weekly. There are other spillover effects, of course, like (hopefully) lower price of liquefied petroleum gas, which is now at more than P600 per cylinder, the type used by households.
Lower pump prices, especially for diesel, can stave off suffering of those who drive and ride jeepneys, tricycles, buses, taxis, and reduce the cost of doing business. Whether or not these savings will result in lower prices not just of food but all the other goods and services we buy on a regular basis – and when – is another matter. In the meantime, oil may continue to rise to the teeth-gritting consternation of everyone on the planet except the oil barons of oil-rich countries.
It is more and more evident that households will have to look at other direct ways to avoid getting hurt by rising oil prices instead of just looking for a tariff cut. Or even moving back to a regulated oil sector. (THAT is really silly). At least, our spending is something we can control. Maybe if we think hard enough, we can figure out at least five ways to lessen our household’s demand for oil and petroleum products.
Let me see:
1. Eat more vegetables and fruits that don’t need too much cooking. More healthy too. Seriously. Boiling beef can take at least 30 minutes even in a pressure cooker and that consumes a lot of LPG. Stay away from easy-cook noodles and canned goods, though. Getting a hit in our kidneys through bad eating habits is a serious personal finance slip-up. Kidney problems are expensive!
2. Commute if possible. Walk if possible. Thank goodness for the MRT, I can schedule meetings on off-peak hours in a mall near a train station and save the environment too. Sounds very motherhood-ish but it really does work, at least for me.
3. Use a bicycle for short distances on streets that are not too busy.
Hmm. OK, so I can think of only three. Come on, add some more. ☺
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Hi Salve,
Happy New Year.
I'm extremely lucky in that I get to walk to work so not only do I save on gas but I also do not have to worry about parking. Unfortunately, my wife's job requires a lot of driving so we also have to find ways to cope with rising prices. So far, here are some of the things we do.
1. Use our air-con timer. Our old one didn't have one so we used an attached timer back then. We sort of set it to shut-off in the wee hours of the morning to save on power.
2. Unplug chargers / TV's. Got this tip off the net. Having a TV or charger on standby still wastes power.
3. Schedule trips. As much as possible, we try to schedule trips before 11 a.m. and after 2 p.m. It's usually quite hot during those hours and the extra heat makes cars consume more fuel. (Unless you enjoy sweating.)
4. Use O/D switch. Newer cars usually have an overdrive switch and a recommended setting for better fuel efficiency so consider using it.
5. Check tire pressure. We usually check tire pressure once a week to make sure they're optimally inflated. Improperly inflated tires can lead to lower fuel efficiency.
Will add more in the future.
Hi Aya, thanks for sharing. I particularly like the tip about checking the tire pressure. Probably because of the story of that kid who solved the problem of the truck that was too tall for the bridge, heh. Will wait for more of your tips!
Grabe, P600/cylinder of LPG?! And one cylinder is only a few kilos. If you cook a lot. it may not even last for a month.
yep, nina. 11 kilos only, i think. prices of basic needs are really going up. i'm thinking of not buying beef for a month! :)
When I was a kid, we used to have a stove powered by charcoal. My mother usually instructs our maid to cook there during night time.
I wonder if we can really save money by using charcoal? I haven't seen a good charcoal stove lately might give it a try someday.
Charcoal use is bad to the environment too. The more you consume, the more trees are used especially the mangroves.
Very uso na ngayon ang motorcycle but you need to be safety conscious.
I have a motorcycle and I use it going to the office and when going out with my girlfriend. The rough estimate of my monthly gas expense of P500 (6months ago) has increased to around P650.
With regard to safety, well, it's in the way you drive and how you react to road situations. Been driving a motorcycle here in the Metro for more than two years already, and thanks to the Lord's grace, no accidents yet. :)
the world should really start saving the energy as this is clearly depleting and for sure someday will be gone... i like the idea of getting less meat in our food intake to avoid lengthy cooking. kinilaw na isda will also do... just suka is all you need :)
By trying to save fuel we not only save cash but also prevent pollutions and provide a fresher environment. The number of vehicle users will never decrease so ultimately fuel prices will keep on rising. There is nothing so pinching to me then calculating my monthly fuel expenses, though I use economically it's not making much difference. Maybe the best and safer alternative will be to use fuels generated from vegetable oils in the case of preventing our environmental. America has been using corn, to generate oil and this has affected the price of corns all over the world. So either way fuel prices will never decrease.
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