Taxi drivers are saying that the already sky-high prices of diesel fuel and gasoline will rise again next week. From what they heard, the average increase would be about P12.00. That will bring the prices of gasoline to almost a P100.00 per liter. Diesel fuel would then end up at about P80.00 per liter.
At those rates, we will be going through real economic difficulties. Sending kids to school would become a real pain in the ass. Hospital patients might survive being operated on but would die of heart attack when they see their bills later.
But there will be those who would prove they are a lot smarter than the rest of us. They will look at things as opportunities. Among them would be the hoarders who would keep their stocks instead of selling these to the public to keep the supply low. When that is juxtaposed by high demand as in the case of basic commodities which people must have to buy, no matter the prices, then the prices will shoot up.
Remember this with the aid of the joke on former President Ramon Magsaysay who told his cabinet members to “’repel’ the law of supply and demand” to have lower prices. Just a mechanic that he was, he did not care about the difference between “repel” and “repeal.” All he cared for was for the prices of basic commodities to go down. That is why he became one of the best presidents we ever had. His interest was more on the people’s welfare rather than on English or grammatical niceties.
The early tycoons of Hongkong exploited this economic principle to the hilt. They would just let their ships carrying basic commodities stay out at sea, while they manipulate the supply of goods “on shore.” Once the supply is low, the prices would go high and that would be the time when they would signal their ships’ captains to come ashore. At the expense of the people’s welfare, they would then make a killing.
Just this week, we had a hard time competing the paper we needed to print this issue. As we were told by the traders, Manila suppliers did not send any. That smacks of hoarding to create an artificial lack of supply.
Any government that really cares for the people should crack down on hoarders especially during difficult times like what we are going through.
But don’t bank on this. Our government officials will be busy looking for corrupt ways to enrich themselves rather than worrying about the sufferings of people like you and me.
Individually, we can counter high prices to a certain extent by keeping our consumption low or by producing as much as possible the basic things we need on a daily basis.**