On Oil Price Hike and Power Price Cut

By Herbert Vego

WHAT happens when the oil cartel announces price hikes of petroleum products?

As sure as the sun rises tomorrow (assuming the hike proceeds as announced), motor vehicles will fall in line at the gas stations for “full thank”.

We have gotten so used to cartelization among oil firms that we no longer look up to the government for help.

Tomorrow may see the implementation of price hikes by ₱1 to ₱12 per liter for gasoline, and ₱0.30-₱0.50/liter of diesel. For those of us who used to experience occasional price hikes by mere centavos, that portends another round of price hikes of food and all other basic necessities.

There are always reasons given. This time, the news says it’s because of intensifying tension in the Middle East, Israel’s expansion of ground operations across Gaza, and China’s stimulus package that may increase oil demand.

Bad news has always been an excuse for price increase. Remember, soon after terrorist Osama bin Laden died in a US Navy raid at his home in Pakistan on May 2, 2011, our oil companies jacked up gas prices by an unprecedented ₱1.50 per liter added to the previous price.

Of course, there are times when oil companies uniformly implement price cuts by a few centavos which, alas, become insignificant when the hikes strike back. It’s akin to a series of “two steps forward, one step backward.”

Meanwhile, we all find that our incomes do not catch up, making us poorer.

In a way, those who can afford “retaliate” by replacing their gas-fueled vehicles with e-vehicles that require no gas to run.

They sell their discarded vehicles to the less fortunate, thus intensifying traffic problems on city roads.

I can only wish to go back to my high-school days in the 1960s when I was acting as conductor of our jeepney during summer vacations. In those days, regular gasoline cost only 30 centavos per liter. That partly explains why the minimum jeepney fare for a seven-kilometer distance then was only ten centavos.

To this day, we can just imagine the undeserved windfall that the conspirators make from selling old stocks of oil products at higher prices.

Blessed are the desert countries that used to be poor. Saudi Arabia was one of them. There were no cars, no electricity, no roads, no infrastructure, no hospitals, etc.

But that was before the discovery of oil beneath its desert sand in 1938.

-oOo-

GOOD NEWS FROM MORE POWER

AS we reported last week, MORE Electric and Power Corp. (MORE Power) has reduced the average rate of residential electricity in Iloilo City to ₱10.4177 per kilowatt-hour, which means ₱0.7836 per kWh lower than the previous month’s billing.

But the bigger story is that, in its first five years of operation, it has helped effect rapid urban growth, generating investments worth at least ₱5 billion.

On top of that, MORE Power itself has sunk a direct investment of more than ₱2 billion for the rehabilitation and modernization of the system, including safety nets – as in undergrounding what used to be overhead “spaghetti” lines along the one-kilometer stretch of the city’s historic downtown, better known as Calle Real.

I remember that press conference long ago where MORE Power President/CEO Roel Z. Castro said, “In our plan to boost business dynamism in the community, we are committed to bring delight to our power consumers, enrich the lives of our stakeholders, and foster a nurturing and learning culture.”

No less than Mayor Jerry Treñas, on the occasion of MORE Power’s 6^th franchise anniversary last February 14, wrote in his congratulatory message: “MORE Power has gone beyond simply distributing electricity. It has become a true partner in Iloilo City’s development. Your commitment to modernization, sustainability, and community engagement has greatly contributed to our city’s progress. From upgrading our power infrastructure to supporting various initiatives that uplift the lives of Ilonggos, your dedication to public service has been instrumental in shaping a brighter future for our city.”