Republic of the Philippines 1

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Off-Campus Program - General Tinio (Papaya)
Brgy. Concepcion Gen. Tinio (Papaya), Nueva Ecija

“OIL PRICE HIKE CONTINUES FOR 7TH

CONSERVATIVE WEEK”
Case study 1

Submitted by
Group 3 BSBA 1-A

Members:
Bernardo, Lloyd Erron M.
Parangao, Erika Joy P.
Cuizon, John Jeric
Hilario, Sheryl
Agustine, Danica
Sanchez, Charmain

Submitted to
MAAM JENINA CLARISSE

Transforming Communities through Science and Technology Email: papayaoffcampus@gmail.com

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 Republic of the Philippines 2
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Off-Campus Program - General Tinio (Papaya)
Brgy. Concepcion Gen. Tinio (Papaya), Nueva Ecija

ABSTRACT

The Philippines has been confronted with a notable and persistent escalation in oil prices, with the
market experiencing a seven-week consecutive upsurge. This sustained increase has been
influenced by a confluence of global and domestic factors, including international supply constraints,
geopolitical tensions, and local economic conditions. As a net oil-importing nation, the Philippines
faces multifaceted challenges stemming from elevated fuel costs, encompassing impacts on inflation,
transportation, and overall economic stability. The implications of this prolonged oil price hike
necessitate a comprehensive assessment of its effects on industries, consumers, and governmental
policy.

THE ARTICLE OF ISSUE

The article highlights the continuous increase in oil prices by major oil companies in the Philippines,
including Petron Corp., Shell Philippines, Chevron Philippines, Seaoil Philippines, and Total
Philippines. These companies have implemented another round of fuel price increases, raising local
gasoline prices by 45 centavos per liter and diesel and kerosene by 90 centavos per liter. The price
adjustments are attributed to movements in the international oil market and foreign exchange rates.

INTRODUCTION

The study is all about the impact and issues of rising prices of oil where the seventh consecutive
week of price increase implemented by petroleum companies in the country that was reported on the
year back 2013, in reaction to increase in world crude prices. The world experienced an increase in
fuel prices where a lot of driver's workers and others are not agreeing because of increasing prices.
The causes of rising prices of oil is likely that both increases in demand and fears of supply
disruptions have exerted upward pressure on oil prices. The Global demand for oil has been
increasing, outpacing any gains in oil production and excess capacity. The increases in prices is
expected to have adverse effects on poverty and is worrisome precisely because it is expected to be
unfair for the market industry affecting the customers and those people are in meet the most.

BODY

The Philippine oil market has been grappling with a persistent upward trend in oil prices, extending for
a seventh consecutive week. This situation poses significant microeconomic challenges, impacting
consumers, businesses, and the overall economy.

The sustained price hikes raise concerns about the potential effects on the cost of living, inflation
rates, and the country's economic well-being. The key issue at hand is to comprehend the
microeconomic factors driving these increases and the potential responses from various economic
agents.

One possible factor contributing to the price hikes is the interplay between supply and demand.
Geopolitical tensions or supply constraints may have caused a shift in supply, resulting in higher
equilibrium prices. Moreover, the relatively inelastic demand for oil, with limited immediate substitutes,
allows prices to rise without a substantial decrease in consumption.

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 Republic of the Philippines 3
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Off-Campus Program - General Tinio (Papaya)
Brgy. Concepcion Gen. Tinio (Papaya), Nueva Ecija

The market structure of the oil industry also plays a role in pricing dynamics. If the market is
dominated by a few major players, they may possess the power to set prices above competitive
levels, potentially contributing to sustained price increases.

DISCUSSION

Engage in an in-depth discussion on the various perspectives surrounding the issue of consecutive oil
price hikes in Manila. Consider the viewpoints of energy experts, policymakers, industry
representatives, consumer groups, and affected stakeholders. Analyze the potential implications of
the price hikes on the economy, society, and the energy market.

CONCLUSION

The continuous oil price hikes for the seventh consecutive week in Manila, Philippines, have
significant implications for consumers, businesses, and the economy. Understanding the factors
driving these price increases and the regulatory challenges posed by industry deregulation is crucial.
Efforts to promote transparency, fair market practices, and alternative energy sources can help
mitigate the impact of rising oil prices and ensure a more sustainable and resilient energy future.

RECOMMENDATION

• Subsidies and Taxation Explore government subsidies or tax reductions to alleviate the burden
on consumers. Adjusting taxes or providing subsidies can directly impact the final price of
petroleum products.

• Diversification of Energy Sources Encourage the development and use of alternative energy
sources, such as renewable energy (solar, wind, hydroelectric), to reduce reliance on imported
petroleum products. This can also foster energy security and independence.

• 3Efficient Transportation System Promote public transportation and improve infrastructure to

reduce the dependency on private vehicles. Efficient public transit can lower the overall
demand for fuel.

• Price Monitoring and Regulation Implement effective monitoring mechanisms to ensure fair
pricing practices in the petroleum industry. This can include regulations to prevent price
manipulation and promote healthy competition among suppliers.

• International Relations and Trade Policies Strengthen iplomatic ties with petroleum-exporting
countries to negotiate favorable terms for importing petroleum products. This could involve
trade agreements that secure more competitive prices for imports.

Transforming Communities through Science and Technology Email: papayaoffcampus@gmail.com

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 Republic of the Philippines 4
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Off-Campus Program - General Tinio (Papaya)
Brgy. Concepcion Gen. Tinio (Papaya), Nueva Ecija

Transforming Communities through Science and Technology Email: papayaoffcampus@gmail.com

facebook.com/NEUSTPAPAYA