Pop quiz for lawmakers
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Statements made by Cebu Representative Eduardo Gullas that two oil companies have raked in P70 billion over the last 10 years reflect the utter ignorance or rather the brutal imbecility of politicians in this country when it comes to economic matters and the proper functioning of the price system in a free market.
Do politicians think that businesses will ever get into business without the promise of a fair return on capital. For one thing, oil companies operate on a free market basis. Unlike public utilities like Meralco, consumers have a choice in buying from any of the oil players large or small. Consumers can actually by-pass oil companies by forming cooperatives and importing petroleum products themselves.
But why don’t you think this is happening? The answer is pretty obvious — the risk on capital, Mr. Congressman. The oil business is a very risky business. Imagine if you stocked up on oil last week and the price dropped (as it did) by $10. Not to mention the risk of shipping oil from overseas in these huge tankers, storing them in depots and moving them to the gas stations.
Are you aware of how much pilfering happens in the distribution system? Please realize that if we did not have free enterprise to facilitate that process, we would not have oil products available to us at reasonable prices; yes, even at P60, petroleum prices are reasonable.
Have you ever heard of scarce resources, Mr. Congressman? Of course, there is no scarcity of politicians running for office. If you ask me, I would rather live with petroleum prices at this level because I have a choice of using my cars or taking public transport or even walking (which, by the way, I have been doing to save money).
However, when I look at the prices the citizens of this country has to pay for maintaining congressmen and senators and all politician for that matter, I can see the real place where the Filipino people is really being ripped off. And it is not at the gas pump.
Gus Cosio, Quezon City (via e-mail)
