Life When Fuel Cost Is High

While waiting for our turn to get our fill at the gasoline station Friday night, you can notice the griming faces of other motorists. The prices of fuel has increased beyond our imagination, and still increasing.  Thanks to the speculators, who were also blamed for the financial crisis that hit Asia on the late 90′s. Thanks also to OPEC who insisted there is no need to increase production that led to limited supply, whether this is just a perception or real. Not to be outdone are the tensions in Nigeria, the impending attack of Israel to Iran and the middle east as a whole.

The crazy petrol prices have caused sharp increase on inflation driving the prices of food and other commodities higher. This have prompted workers to demand for higher wages, that may lead to closure of small enterprises resulting to more unemployment. With the decrease purchasing power and the uncertainty in the air, people will spend less and little money will circulate in the system. This will lead to more woes.

Based on my readings, one way to cope with the crisis is to put more money on circulation and create an environment conducive to spending. The national gov’t. here in the Philippines have approved a law increasing the take home pay of ordinary workers and middle class by cutting on income taxes. Hoping that the extra cash generated by the exemption will be spent and circulated back to the system. This will benefit both the gov’t. in terms of the taxes on consumption and more money in the system, and the economy. Some cash dole outs and subsidies to the poor, though under fire, are also being implemented to pump prime the economy.

As a consumer, these are some of things we can do.

1. If you are liquid, this is the time to buy. Those affected by the crisis and in debt will sell their properties and cars lower than the purchase price.
2. Continue saving money but do not be afraid to spend. Hording is not good to the economy.
3. Find alternate ways to earn money.
   • Start a small business
   • Blog and earn
   • If you’re a businessman, diversify your business
4. If you will borrow money, borrow wisely.
5. Buy fuel efficient cars, or trade your old car to a fuel efficient one.
   • If you are in the US, with bad credit, bankrupt, retiree or just starting up but would like to avail of  Auto Loans to purchase brand new or pre-owned cars, there is a credit facility for you. Check details at  www.1800nextloan.com .

I read in the news that Saudi is now concerned of the  spiraling cost of fuel and promised to increase  production ahead of the OPEC meet. Japan, on the other hand has launched it’s first Honda car that is not dependent on fuel. Here in the Philippines, the gov’t is encouraging the conversion of vehicles from fuel to LPG, and to accelerate the roll out of natural gas powered vehicles.

I hope a good solution to the present fuel crisis will be discovered soon. What about you, what are you doing to survive?