MERGED: All About OIL PRICE HIKE

[binarypill]

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hehehe...

how about turning this around?
ato silang duwaan sab....like, in our country...let's only patronize one fuel brand...PETRON perhaps? or SHELL or CHEVRON? if for one month one or two of them have no fuel sales, unsa kahay mahitabo nila or sa ilang fuel prices?...law of supply and demand?


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good idea! but can this actually be pulled off? another plus for this idea is we could finally see just how many istoryans are out there.

i propose Petron since it was at least a Philippine company once.

[jumper_stage]

solusyon ani mag bike tang tanan or dili ba mamokong nalang

[boylaang]

tax tax tax double tax

EXCISE TAX ON PETROLEUM PRODUCTS

Bureau of Internal Revenue Website

[binarypill]

tax tax tax double tax

EXCISE TAX ON PETROLEUM PRODUCTS

Bureau of Internal Revenue Website

please read earlier threads. i'm tired of pointing out how short-sighted this POV is.

[binarypill]

solusyon ani mag bike tang tanan or dili ba mamokong nalang

biking is good but what about those who commute large distances? also, okay ra ang mamokong kung di masakpan. kung masakpan, mabukol.

i prefer leo_trams' idea of "turning things around".

[aulim]

law of supply and demand?
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speculators can sell you (or buy) a contract even if they do not have physical stocks. they will buy back (or sell) when the price goes their way (make a profit). Maybe Pres magsaysay was right after all. repeal that law (law of supply and demand)! If you do not have physical stock then you are not allowed to sell paper contracts as this will skew the supply/demand picture artificially.

just my thoughts

[binarypill]

@aulim: the law of supply and demand is actually a perceived law of economics (and life, actually). it wasn't implemented by anyone. it's like the law of gravity. that's just the way it is.

what you are referring to is probably the concept of speculation. actually, it has some merit. for instance, let's say you are running a business selling chicken. people come to your business, buy your chicken and sell them at whatever price they want. you set your own price, they set their own price.

now suppose business is doing too good - too many buyers and not enough chicken. you up your price - but you do it real careful because you don't want to lose customers. you also want to expand your business to accommodate the increase in demand but your hesitant because of the cost.

this is where a speculator comes in. a speculator is the guy with so much money that he comes to your business and says: "i'll buy a million chickens from you and you don't have to give it to me right now. i'll give you what it will cost but you give me the chicken later on". so now you have the profits of a million chicken without having to actually give out a million chicken. now you can expand your business and increase your supply!

but how will the speculator get back his money?

easy, he's bought rights to your chicken now - at a time when the demand is high. and, since you haven't produced enough chicken to satisfy the market, demand is just going to go up. so the speculator starts selling his rights to the million chickens that he bought from you piece by piece, with profit added.

the people who buy chicken will then start buying from him because, well he's the one with the chickens - well actually he does not HAVE chickens. he just has this contract he's selling that assures the buyer that he can have some chicken at some later date.

now that gives some assurance to the buyers that they will have some chicken soon. that gives you time to expand your business and up your chicken production. at the end of the day (or maybe a few months), the imbalance between supply and demand is slowly re-balanced. all because of that speculator.

-but of course, if you read that. you can see just how badly a speculator can FUBAR the market.

[aulim]

you can see just how badly a speculator can FUBAR the market.

In the end, the producer will not have to come up with a million chickens. he just have to buy an contract for a million chickens to liquidate his selling a million chicken in the first place (assuming the price goes down). The producer is hedging (while prices are good); well, the speculator is speculating. Speculator could end up losing his pants if price goes against him.

I remember a merril lynch trader telling me to hedge my produce (while prices are high). But Philippine market is not yet ready for that kind of stuff.

[natas888]

basta naai gubat sa middle east saka dayun gasolina negosyo man gihapon ang tanan..

[masakiton]

kung taas ang fuel prices ... more money sa ato current administration kai percentage baya ang taxes