oil prices

Timed Release Solution

Drugs are labeled ‘timed release’ when its ingredients are dissolved at differnt intervals in the stomach. This gives an effect of  ‘extended relief.

Malacanang has replaced its executive order to effect a price freeze on oil products to one which regulates both the price and the profits of the oil companies via timed effectivity.

The price of oil products will increase gradually from the point when it was frozen (and the oil companies are losing money) to a point when the oil companies will have made profits and recovered from that point when it lost money.

In other words, the price of oil products will increase by stages until the oil companies would have attained full profit recovery. This should work.

Now why did we not think of this before? (ehem!)

Frozen Gas Prices?

The next threat by the oil companies is an announcement that there is enough oil to last only 13 days. This is after malacanang puts out the executive order that decrees a price freeze on gasoline and lpg. The price of gas fluctuates and it depends upon the international supply and demand. Still, malacanang has the public in mind when it promulgated this executive order. There will now be an impasse in the price of gas within the next coming days. Who will blink?

A compromise solution may be in the offing, however, if both sides would only listen.

Instead of freezing the price of oil products, malacanang might do better to impose a limit on the profits of the oil companies to, say about the same profits the oil companies would receive should they put their monies in the banks?

Simple, isn’t it? And the oil companies have now gladly offered to open their books! The price of gas will fluctuate, but the profits of the oil companies will not, and so the interests of all sides will be met.

wizard1

Regulate the profits, not the price!