Why can oil companies raise prices on old stocks inventories?

It is more fun criticizing

 DOE said that this allowed under the oil deregulation law that allows oil companies to recover prices of new inventories at much bigger price.

In the hearing conducted at Senate (at which  Sen Marcoleta walked out) he pointed out that  at current fuel usage at 900,000,000 liters per month and at P70.00 price increase, this amounts to   P63 billion or about  P2.1 gross profit per day.    While this is good for the businesses, it is bad for the entire country (which is the objective of the solons)   Is there no check and balance in the oil deregulation

The good senator thinks that this is impoverishing many Filipinos and can be likened to the maleta scandal   

(Examination of the oil deregulation  show  law is not clear about consumer protection:   price caps, pricing higher old inventory etc. Oil Deregulation Law. RA 8479   It really needs amending and could have passed in haste.   No safety nets for the citizens and many political savy individuals should not have signed the law.

The SP was asked what should be included if the oil deregulation was to be amended and his reply was not clear.   Simply delete the law and go back to status quo

Reps Barzaga and Leviste will soon sit up straight; the big ones will whip them with sticks to make them behave

It is more fun criticizing

The two very famous opposition reps may soon quiet down -  Rep Barzaga because of the P100 million cyber libel suit filed by mogul Enrique Razon and  Rep Leviste because of the P24 billion fine from DOE.

Their adversaries who are apparently hurt by their noise will use the arsenal at their disposal to make them stay quiet.    What will happen next?  Will they continue to be brave and fight on?

BNPP (nuclear power plant) may reduce power costs - ERC

It is more fun criticizing

This post echoing past position of DOE dont think so.    The high cost of amortizing the BNPP, maintenance, fuel rods, and disposal of the nuclear waste would not bring down cost.

As per computation of former Sec of Energy in his speech before MBA students, he said that assuming that BNPP can sell power at P3.00 kwh,  or 50% of the outputs of baseloads, that would amount to 

only 600 mw /`10,000 MW Luzon grid, that would amount to only 6% of total power.    That would roughly be only   50%  x  P6,00 x 6%    only P0.18 of total generation cost.   That is not enough to offset the high energy cost brought about by the IPP with forced to buy agreements.   

Despite all the arguments, Fukushima experience with the tsunami brought by earthquake,  (Japan eventually giving up on nuclear power and shifting to other energy sources) our energy managers would seem to be bent on going back to nuclear.  

Sec Petilla's dare to restore electricity by Christmas was bound to fail; thus he must resign

It is more fun criticizing

Philippines  |  December 30, 2013

 

Sec Petilla sets resignation in motion

From Rappler - Sec Carlos Jericho Petilla will resign if there is no power in  Leyte by Christmas.
Check  - There is no power yet in Leyte from NGC

In our MBA class, I solicited comments regarding the plan of DOE sec to have Luzon and Visayas grid interconnected by December 8, 2013.  Sec Petilla warned MM consumers of possible power shortage in Luzon grid, so they must save 100 mW to cover the Visayas demand.

The student who is nearly to be one of the Senior Manager of a local distribution company commented that the promise is in the unrealistic territory because there are about 500 transmission tower that were damaged.  He doubts whether NGC has the capacity (financial) or capability to restore the fallen/damaged tower given the self imposed deadline by the Secretary.

So out of delicadeza the poor secretary must eat his hat, and swallow his pride,  and keep his word out of delicadeza.

In our self mastery, we are warned to be careful of what we say because they soon become our destiny and they will haunt us.  When our words come home to roost;

Maybe out of hubris, many people like the Emperor who wore no clothes are blinded by psychophants , fail to see reality and thus make bad decisions.  Or had to make lofty statements for political reasons

  So sorry sir.  A promise is a promise