Wednesday, May 7, 2008

Soaring Prices of Fuels and Food, and 8.3% Inflation: This is the Philippines

With the soaring prices of fuels and food especially rice, what will happen to the Philippines now. An 8.3% inflation rate is an alarming figure. If this will go higher in the succeeding quarters, the Philippines may experience social unrest and riots similar to African nations.

Oil companies are still planning to increase the price of fuels to .50 a liter for the next few weeks. These companies said that they still have to recover at least P4/liter. That would bring the prices of petroleum products to more than P50 pesos a liter.

The failure of the government to import additional rice to support the demands of the Filipinos during lean season is another major concern. Based on some analysts, the price of rice would go as high as P60 per kilo for ordinary rice.

If our government would just lift the VAT(value added tax) on oil, the estimated cut in the price of petroleum products would be P5 pesos per liter. Why is it the government dont want to do this. At least it will have an impact on the prices of our basic commodities.

Again, this is economic development, according to the present administration.


  1. the government is truly to blame for this food shortage. but reducing or eliminating VAT is not the long term answer. the philippines needs to start improving the productivity of their domestic crops by using genetically enhanced seeds and more potent fertilizer, etc. the government, "the government", who are they but a bunch of selfish left-footed sociopaths, has not fortified the trading position of the philippines to ensure a good supply of rice. being the biggest importer of rice should have been a very strong bargaining point at many points--not the weakness that it is now.
    am looking to discuss these matters. please read my blog at

  2. thanks for the comment.

    "but a bunch of selfish left-footed sociopaths"

    whew, i cant say anything more..:-)