Times have changed and as much
as the humans progressed, there have also been difficulties that were brought
upon by their own inefficiencies. Currently across the continents, prices of
crude oil and gas keeps on rising into leaps and bounds, still without further
notice when the world economy will cease to a normal state. Oil prices rose on
Thursday amid confusion over whether major producers would help to plug a gap
in supplies from Russia, the recent spikes in oil prices have been due to the
impact of Russia's invasion of the neighboring Ukraine on an already tight
global crude supply. Effectively on Tuesday, March 15 2022, the oil companies
implemented a price increase in domestic oil products. Gasoline has increased
by P7.10-P7.20 per liter, and diesel by P12.00. In an interview on rappler with
Department of Energy Secretary Alfonso G. Cusi, the average for the past two
trading days reached $104.79 per barrel. This is lower than last week’s average
of $122.61 per barrel, which had caused the massive hike in local pump prices
on Tuesday, March 15. He had also added in his own statement, according to
Secretary Cusi, " If this trend ranging from $104 to $105 per barrel
continues, we could experience a rollback in prices next week. For gasoline, it
could be more than P5, and for diesel, it could go down by P12 or more15 March
2022. " was what he said.
With the current war and territorial
strife between Russia and Ukraine, the prices of oil are still skyrocketing and
even if it would cool down soon, another price hike may presume again due to
the unending politics and the presently hostile relationship between the two
countries. Oil price hike in itself is already an imbalance and it also has a
lot of disadvantages not only to the involved countries in a dispute, but also to the other countries all over the world due to the hefty expenses being spent
every day on crude oil and other oil products that people use in their daily
lives. With such a continuous rise without the circulation of money in our
economy, not only the nation but also people will suffer from the ever-changing
costs of oil and money expenditure that are affecting everyone's own budget.
Aside from the general populace, an increase in the price of crude oil can lead to
a steep fall in the current accounts which further leads to worsening the
treasury budgets and the savings and investments of the country. These
imbalances remain to worsen because of the increase in crude oil prices and
push the economy to a larger crisis. For example, India right now, being a major
oil importer suffers from all these threats. Developing countries are affected
more than developed countries due to the absence of advanced technology.
Shelving the disadvantages aside,
there are also benefits that this increase in oil prices has brought to our
country's economical value. As one of the main producers of oil, with the
ongoing crisis in Ukraine and Russia, the value of all other exported products
with oil has risen and many supplies have been successfully exported outside
earning more income for our country's economy despite the turbulent state of
cash flow. Since most oil resources are being exported outside, now with high
oil prices (and high gasoline prices), the majority of Filipino people will be
able to drive less, stay closer to home for shopping, and combine various
errands to be more efficient, and so on. Likewise, they will spend less on
oil-derived products whose prices rise with higher oil prices, as long as it is
not necessarily needed.
During these times of upheaval where
dire support is needed, the world has indeed reaped a lot of advantages as well
as disadvantages from the ongoing oil price hike, not just within the two
warring states but also outside the nearby countries of Asia and the middle
east. However, as far as these things could go, I believe it is now more
necessary to end the war and prevent more deaths and destruction, as the
suffering of people from the oil price hike and the damages that the war between
Ukraine and Russia had caused isn't by all means just a little bit as it had
also become another issue that the world is currently facing along with the
crisis of oil price hike. As for when the oil prices would finally go back to
normal, only when the conflict between the two countries and their use of firearms
would cease for the sake of resolving things peacefully will the immense use of
the limited production of oil resources and the rise of oil prices come to a halt.
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