Oil is cheap: What about the fares?

Amid the usual Christmas rush, vehicular traffic is piercing every commuter’s bone.  In fact, last week’s traffic jams could be among the worst we’ve experienced in Metro Cebu.  On these frustrating experiences, several reasons were brought forth.  Some said, it is because vehicles are now offered at very reasonable down-payment and installment schemes, thus, the public is enticed to buy more.  Others said that on account of Cebu’s economic boom and employment rise, some find prices of cars reasonable and affordable.  Should we elect to buy those opinions, then, in both instances, we shall see more cars hitting the roads, thus, the congestion.

Yet, most of the Cebuanos believe that this is primarily due to cheaper gas and diesel prices.  Why? Because gas guzzlers (like the big SUVs) that used to be hibernating in the garages are now used, thus, adding to the congestion on the streets.  So that, some frustrated motorists, because of the very severe road congestion, wished that prices of oil should have remained high to alleviate this worsening traffic situation.

The fact, however, is that cheaper oil is here to stay a bit longer.  Therefore, it might frustrate further those who wished for higher prices. The reason is very simple, there is an oversupply of oil in the market as producers/exporters like the member countries of the Organization of Oil Exporting Countries refuse to cut production output.  Due to such decision, being a largely oil importing country, we are one of those that stand to benefit the most.  The question now is, what should we do having this supposedly favorable scenario.

First and foremost, the manufacturing sector may take advantage of it by increasing their production output.  With cheaper oil, their production cost will certainly be lower than usual.  On the other hand, most individuals who used to spend a lot on gas and diesel can save more this time.  Whatever they saved out of these oil price cuts, they can always spend for something else.  Thus, we shall surely have moneyed consumers who can readily absorb increases in production outputs.  Likewise, for the same reason, the construction sector can take advantage of it.

More importantly, however, the direct beneficiaries of these oil price cuts should have been the commuters who rely so much on public transport, like jeepneys.  Supposedly, with oil prices so low, fares should have been reduced correspondingly.  Today, however, they are so quite.  In fact, in trying to let the riding public look dumbed (as if we don’t know that they need to reduce fares), they held a transport strike (though very unsuccessful) last week to dramatize their protest over the government's plan to phase out old jeepneys.   Sort of a diversionary tactic.

This is really very sad.  To recall, not long ago, when there were spikes in the oil prices, jeepney operators and drivers were so quick to the draw.  They automatically demanded for higher fares.  To pressure the authorities to give in, they went on several transport strikes.

Remember, in all these transport strikes, we’ve always been in the receiving end of these utility operators’ and drivers’ shenanigans.  Obviously infiltrated with ideologues, then, these bunch of bullies were harassing sensible drivers who continued to ply their routes.  Feeling ignored, these thugs resorted to throwing metal spikes in the middle of the road to incapacitate the non-striking drivers’ units.

Consequently, classes were suspended.  Some workers arrived late and others went on leave.  As the days ended, long queues in several intersections were ordinary sights. Carbon and other satellite markets’ crowds were relatively scarce as most diehard patrons were immobilized.

Sadists that they were, these ruffians rejoiced in all those inconveniences we were in.  They were trumpeting here and there about how successful the transport strikes were. They rejoiced without realizing that in doing so, they successfully pulled the school children several days back to illiteracy and further impoverished the families of ordinary employees who were not able to earn for days.

Such strikes did not only bring us inconceivable discomforts.  It also dealt us immeasurable losses brought about by economic inactivity.

Frankly, therefore, with all these insensibilities, global reduction in oil prices may not something worth rejoicing at all for the riding public.