Hernandez,Sydney P.

10-Charity

Research in English

Title: The Impact of Higher Oil Prices on the Economy

Thesis Statement: Government need to action about constant increase of oil that affecting the economy
of the Philippines.

1.What are the causes of continued oil price hike?

2.What it can cause to the economy of the Philippines?
3.What can be affected by this Issue?
4.What organizations is involved in this issue?
5. Why oil is important to the Philippines?

I. Introduction

Oil prices began to increase sharply, driven by factors related to both supply and demand. On the
supply side, the first chart shows how the agreement reached between OPEC countries and their
partners to cut production succeeded in containing, and even reducing, the global oil supply. What is
more, the cuts in oil production have clearly exceeded those agreed, as shown in the second chart.  As
2

this reduction in the supply pressured prices up, US crude oil production was expected to surge and thus
contain the price of Brent oil between 50 and 60 dollars. However, in the last few quarters, the US oil
infrastructure has been constrained by bottlenecks and has not been able to offset the impact of the
OPEC cuts. 3

II. Economy of the Philippines

A. Inflation
1. Food
a. Rice
b. Vegetable
c. Meat
2. Transportation Fares
3. Medical Services

B. Shortage in Supply
1.Oil
a. Tar
b. Heavy Oil
c. Light Oil
2. Fuels
III. Most affected in oil price hike

A. Occupation
1.Jeepney Driver
a. Owner
b. Driver
2. Fishers
3. Farmers
4. Factories using oil
B. Machines
C. Consumers
D. Economic Growth

IV. Organization Responsible

A. Department of Finance (DOF)
B. Department of Energy (DOE)
C. Organization of the Petroleum Exporting Countries (OPEC)

V. Conclusion

The Effects of Oil price Hike to the Consumers in the Philippines The 19th century oil became the
big part of people’s life for the machinery and vehicles that people used for their daily living. Within a
year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th
century and is part of the different countries economy, and Philippines are one of the countries that
have an independent fuel company that started in 1978. The Filipino owned company that offers fuel
products ranging from automobile gasoline to industry lubricants and services such as storage and
shipping. For Filipino, oil is very important why? Because of the company that just started, planning to
be independent and to be one of the develop company all over the world. The possible negative effects
of oil price hike in the Philippines are the steady increases in the price of fuel on the global market and
because of the importance of fuel in the production, marketing, and especially to transportation of food
products and the desire of every producer, consumers and to those people involve in using oil. And to
that, it increases the price of fuels used for transportation and the oil to the market, then after too that
it may also affects the price of foods that being sell to the market that have been undergo to a process
transferring into different places. Lastly, the higher household energy bills can contribute to price oil
price hike. Gas and electricity prices typically take a steer from the price of oil, because of energy
providers are using oil to produce electricity.