The rising prices of crude oil in the world market have caused many oil dependent countries in Asia and elsewhere in the world to formulate gradual price adjustments on various oil products as the new prices are announced and adapted by oil exporting countries.
The rapid fashion by which these oil exporting countries increase their prices have made many importing countries particularly in the Asia-Pacific region helpless due to the econoimic and social effects that the industry players must address to substantiate their frequent price ajusstments.
Perhaps a common formula should be adapted to address this very volatile oil market saituation if this rapid price movement will continue at its current pace.
In the Philippines, thousands of consumers would use the streets to protest the ever increasing fuel prices. Most oil companies are fast in increasing the prices but slow in decreasing them when world prices go down.
Prices of these oil products have not gone down to the original level when ajustments were made. Oil companies would claim that they could not go down to the original price level, citing other factors like, currency movements and other market forces.
But why are the world economic powers adamant in switching to other forms of alternative energy in order to minimize the use of crude which is very expensive?
The answers may lie on the "protectionist" attitude of most industrialized countries of the world. A switch to other alternative fuels will dislocate millions of workers who are engaged in oil related business enterprises. Another reason is the resulting losses of businesses that survive on oil dependence.
Sure there is a better alternative to crude. Electric cars are now ready for commercial production and use. Vehicles of late technology will now run on mixed fuel usage like alcohol added to gasoline to reduce its cost. Wind and hydro power technology are now perfected and ready for commercial application.
But the question is why are these alternative ways not being pushed in order to reduce the cost of fuel? Your answer is as good as mine.