MERGED: All About OIL PRICE HIKE

[trollaccount]

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regarding lowering taxes, that can only do so much to control the cost of oil in this country.

Do you even know how much of the price of Gas is due to taxes?

[binarypill]

Do you even know how much of the price of Gas is due to taxes?

VAT is 12% of the price per litre (common knowledge, just look at your receipt). there's also an excise tax of Php4.35 per litre (sorry, no link. accidentally closed the tab from the article).

a quick research online gives me $105 / barrel of oil (international price, March 24, 2011 from philstar, link).

of course, it won't cost that when it comes out of the pump since there are going to be charges for shipping, processing and distribution.

i can infer from those figures but i certainly am not going to assume to know exactly how much taxation affects the current price of gasoline.

thinking about it just a little, i'd hazard a guess that even if government lowered taxes to 1 peso for all petroleum based products, the price would still be too high.

and oh, by the way. if the government does that, then it is going to lose a huge chunk of revenue. that means governmental services are going to be adversely affected. so reduced police coverage, reduced social services, reduced education and so on and so forth. not to mention the government workers who are going to get laid off. then the investors start packing their bags and leaving because of the rise in crime and drop in "attraction" of the country. then a whole lot of people lose their jobs. it just goes on and on and on....

[cardo]

I guess by lowering taxes in oil here in phils can only do a little effect to consumers because sooner or later prices abroad will go up. Lowering taxes would seem impossible also because our country's income are dictated by nations which we have loaned (G7) So, when our gov't lower these taxes then these creditors would then downgrade our status which in turn would shy potential investors abroad. Besides when they cut taxes they would make a point to tax other goods in order to suffice the income they lose. So, either ways we consumers suffer the consequence. Again, for me the main cause of these problem is not here but abroad.

[Albrecht]

hehehe direct ba ang ato pagkuha sa source sa fuel? libog lang ko, if daghan pa ta gpang.agian na distributor for sure mao jud na 1 reason why mutaas ang price sa fuel..

[binarypill]

@Albrecht: distribution costs are actually the reason why cebu sees higher fuel prices than manila and mindanao.

[AntitaniC]

Fuel ain't that expenses if VAT is stripped off, that's for sure....

[masakiton]

incompetence sa ato current administration

[oyong16]

maypag mag motor nalng.. pero wala man kuy motor.... T_T sakit na ang gas ron.. sauna maka palit ko 3 ltrs sa 100 pero karun hapit na dli 1 ltr.. T_T

[binarypill]

@antitanic: if that were the case, then how come other countries all over the world are also seeing high fuel prices?

@masakiton: really? so it's the current administration's fault that oil is past $100/barrel? the current administration must be some kind of command-economy all on its own - and capable of time travel too considering that the price of fuel started rising way before the current administration got formed.

joking aside, we really should look further outward to find the source and solutions to our problems

@oyong: preha jud ta bai. nangutang nalang gud ko ug motor para makatipid-tipid. pero sakit gihapon ui! sa una, 100 full tank na ko. karon, dili na. wapa pa jud ko kahuman bayad sa utang!

[mc888]

just review the lessons on Economics 101 specifically on the concept on the law on supply and demand. makasabot na ta why taas ang presyo.