Mr Lee Posted October 28, 2009 Posted October 28, 2009 (edited) Did the president of the Philippines really think she could dictate to the oil companies, who does she think she is Obama! :23_11_62[1]: While I think it is a great idea to keep oil prices down and while those affected by the floods surely need help, that help should be coming from the governments and those who donate to help but I am not sure how Obama and GMA think they can dictate to major companies without consequences. EXPECTING a demand spike because of a government-imposed freeze on pump prices, Shell, Chevron and Total yesterday said they would start rationing fuel to their gas stations based on their average volume of sales. At the same time, the company announced it would not sell gasoline to large volume buyers at its stations, unless they are regular customers. These lower rates are meant for victims of calamities, said Roberto Kanapi, vice president for communications at Shell. We hope that subsidized products will go to the right customers. Shell said the rationing was part of its preparations to comply with Executive Order 839, which froze petroleum prices to Oct. 15 levels until the President lifts the state of calamity that was imposed in the wake of two devastating storms. In a statement, Shell said it expects commercial and industrial customers to try to buy from gas stations where the fixed prices are lower than wholesale prices, which are not affected by the executive order. To manage this potential volume shift, which cannot be served by its retail sites, Pilipinas Shell will allocate fuel supplies to its retail stations in Luzon based on their average sales in recent months effective immediately, Kanapi said. Kanapi also said that without prejudice to seeking legal remedies, Shell would comply with the price freeze.you can read the whole story here Edited October 28, 2009 by Mr. Lee Link to comment Share on other sites More sharing options...
TheMason Posted October 29, 2009 Posted October 29, 2009 Did the president of the Philippines really think she could dictate to the oil companies, who does she think she is Obama! :23_11_62[1]: While I think it is a great idea to keep oil prices down and while those affected by the floods surely need help, that help should be coming from the governments and those who donate to help but I am not sure how Obama and GMA think they can dictate to major companies without consequences. EXPECTING a demand spike because of a government-imposed freeze on pump prices, Shell, Chevron and Total yesterday said they would start rationing fuel to their gas stations based on their average volume of sales. At the same time, the company announced it would not sell gasoline to large volume buyers at its stations, unless they are regular customers. Link to comment Share on other sites More sharing options...
Mr Lee Posted October 29, 2009 Author Posted October 29, 2009 (edited) Did the president of the Philippines really think she could dictate to the oil companies, who does she think she is Obama! :23_11_62[1]: While I think it is a great idea to keep oil prices down and while those affected by the floods surely need help, that help should be coming from the governments and those who donate to help but I am not sure how Obama and GMA think they can dictate to major companies without consequences. EXPECTING a demand spike because of a government-imposed freeze on pump prices, Shell, Chevron and Total yesterday said they would start rationing fuel to their gas stations based on their average volume of sales. At the same time, the company announced it would not sell gasoline to large volume buyers at its stations, unless they are regular customers. These lower rates are meant for victims of calamities, said Roberto Kanapi, vice president for communications at Shell. We hope that subsidized products will go to the right customers. Shell said the rationing was part of its preparations to comply with Executive Order 839, which froze petroleum prices to Oct. 15 levels until the President lifts the state of calamity that was imposed in the wake of two devastating storms. In a statement, Shell said it expects commercial and industrial customers to try to buy from gas stations where the fixed prices are lower than wholesale prices, which are not affected by the executive order. To manage this potential volume shift, which cannot be served by its retail sites, Pilipinas Shell will allocate fuel supplies to its retail stations in Luzon based on their average sales in recent months effective immediately, Kanapi said. Kanapi also said that without prejudice to seeking legal remedies, Shell would comply with the price freeze.you can read the whole story here I know you hate Obama but really, what does he have to do with GMA setting price ceilings on gas in Manila? The ceilings are to prevent price gouging and aren't costing the oil companies any money. The price of oil is relatively unchanged since Oct. 15 and most of what they are selling now was likely already purchased at the Oct. 15 price. Why should they be able to boost prices just because a typhoon hit? My wife was in Manila when the storms hit and she said the prices for the things in the market went up dramatically. Products worth 100 pesos one minute were suddenly going for 200 the next. I'm glad to see the govt. doing something to protect its citizens from price gouging, I just wish it covered more than gasoline. Food and drinking water should also be included. Businesses are not be entitled to a calamity-driven boost to their bottom line.Sorry, I guess I am not very good at getting my point across. I think there is a very fine line between what government has a right to do and when they go over the line. I do not think government has the right to dictate to private businesses. I also think that none of us including the president knows what goes on within those businesses and what their losses may be due to the storm. So what do the businesses do that the presidents try to force to sell their products for less, the cut back supply to create and even bigger demand until people are begging to pay any price just to get their product. GMA or Obama cannot win IMO.Now an example of why I feel the way I do. Let's say you are in business and have bills of your own to pay and some of your stock has been damaged by the storm and you have no idea when you will get a refill of products to sell, but you will still have to pay for the damaged goods even though you cannot sell them or you might have to pay to repair them before you can start selling them again. So here you are, you still have bills to pay and money that you owe on your inventory, so you decide to raise prices to make up for the damaged goods that you still have to pay for and the the money that you may not earn because of the lack of deliveries. So what does that person do, go out of business, sell what is left at low prices and not be able to pay their bills or loans or raise their prices on the items they have left to sell.While none of us may like being gouged, people will do what they have to do to survive, yet there are those who just take advantage for no reason but how does a president decide which of those people is cheating others and which is just surviving. What will come next if we allow government to dictate such things to free enterprise. I hate to even think about what they have in store for us next. Edited October 29, 2009 by Mr. Lee Link to comment Share on other sites More sharing options...
Mik Posted October 29, 2009 Posted October 29, 2009 I hate to even think about what they have in store for us next.They are going to say it's so unfair you have so much money. Then government will take your money (steal) and "spread the wealth around". . Link to comment Share on other sites More sharing options...
Mr Lee Posted October 29, 2009 Author Posted October 29, 2009 Here is a story which pretty much shows what I have written on this issue. Major companies will not be dictated to by governments and will find ways to make a profit and to prevent losses. While I hate it as much as the next guy, a company has obligations to their stock holders (owners) to make a profit. Petron sees P1.5-b loss, says exports Link to comment Share on other sites More sharing options...
Mik Posted October 30, 2009 Posted October 30, 2009 Let the free market be free of government interference. It's not a sin for a business to make a profit.. Link to comment Share on other sites More sharing options...
Mr Lee Posted October 31, 2009 Author Posted October 31, 2009 Ahhh, at last someone who can see the future under govt price controls.BSP warns against price ceilings on oil Guinigundo said price ceilings would create market distortions and these may eventually discourage sellers from bringing their products to the domestic market, thereby disrupting supply. Once supply of a commodity shrinks and falls below demand, prices would tend to increase, he said.Price caps will only lead to inflationary prices in the future, he addedThe whole story here Link to comment Share on other sites More sharing options...
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