...The Effects of Oil price Hike to the Consumers in the Philippines The 19th century oil became the big part of people’s life for the machinery and vehicles that people used for their daily living. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and is part of the different countries economy, and Philippines are one of the countries that have an independent fuel company that started in 1978. The Filipino owned company that offers fuel products ranging from automobile gasoline to industry lubricants and services such as storage and shipping. For Filipino, oil is very important why? Because of the company that just started, planning to be independent and to be one of the develop company all over the world. The possible negative effects of oil price hike in the Philippines are the steady increases in the price of fuel on the global market and because of the importance of fuel in the production, marketing, and especially to transportation of food products and the desire of every producer, consumers and to those people involve in using oil. And to that, it increases the price of fuels used for transportation and the oil to the market, then after too that it may also affects the price of foods that being sell to the market that have been undergo to a process transferring into different places. Lastly, the higher household energy bills can contribute to price oil price hike. Gas and electricity prices typically take...
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...The Effects of Oil price Hike to the Consumers in the Philippines The 19th century oil became the big part of people’s life for the machinery and vehicles that people used for their daily living. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and is part of the different countries economy, and Philippines are one of the countries that have an independent fuel company that started in 1978. The Filipino owned company that offers fuel products ranging from automobile gasoline to industry lubricants and services such as storage and shipping. For Filipino, oil is very important why? Because of the company that just started, planning to be independent and to be one of the develop company all over the world. The possible negative effects of oil price hike in the Philippines are the steady increases in the price of fuel on the global market and because of the importance of fuel in the production, marketing, and especially to transportation of food products and the desire of every producer, consumers and to those people involve in using oil. And to that, it increases the price of fuels used for transportation and the oil to the market, then after too that it may also affects the price of foods that being sell to the market that have been undergo to a process transferring into different places. Lastly, the higher household energy bills can contribute to price oil price hike. Gas and electricity prices typically take...
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...JAN 2013 / Sector Update OIL & GAS SECTOR OIL & GAS Fuel reforms gather pace; ONGC best bet Government has provided a roadmap to diesel deregulation by authorizing OMCs (BPCL, HPCL, IOC) to take minor price hikes periodically. This implies diesel under-recoveries could vanish over next 2 years, which would be a huge trigger for Oil PSUs. Cooking fuel under-recoveries may also vanish once direct cash subsidy scheme is rolled out pan-India. Though this would remove all subsidy concerns and re-rate the entire space, we expect roadblocks due to political fallout of the ~20% diesel price hike. We expect 80% reduction in diesel under-recoveries over next two years. We upgrade ONGC, OIL to BUY with ~12% upside from CMP. BPCL (maintain BUY; 10% upside) is our preferred bet among OMCs due to its E&P exposure. Maintain HOLD on IOC and HPCL as they price in the development. PRICE PERFORMANCE 140 Sensex 130 120 BS E Oil & Gas Index 110 100 90 Jan-12 Jul-12 Jan-13 Source: Bloomberg Axis Capital Does government have the will to go ahead with 20% diesel hike over next two years? Diesel deregulation would imply ~20% hike in prices over a two-year period. Government may find it challenging to implement this given 14 state elections and general elections are due over next 18 months. Any roll-back or delay in implementation will indicate government lacks grit. Upstream stocks to benefit; ONGC top pick Upstream stocks (ONGC, OIL) would be direct beneficiaries...
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...A Commodity Price Change In The Malaysia Market A commodity is a raw material or primary agricultural product that can be bought and sold without qualitative differentiation across a market, such as gold or wheat. A Commodity also maintains a close universal price regardless of who produces it. The main commodities such as aluminium, cocoa, coffee, copper, corn, copper, cotton crude oil, lead, heating oil, gold, lean hogs, live cattle, natural gas, nickel, platinum, palm oil, soybeans oil, soybean, silver, sugar, tin, unleaded gas, wheat and zinc. Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday. Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would be rises most this year, with less pronounced increases in natural gas, zinc and cattle. Besides that, Frenchman said "2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies”, estimating worldwide economic output would increase 4 percent in 2011. Over 70 percent of the growth will come from commodity-intensive emerging markets. China, India and Latin America, in particular, will be acting as a 'pull' for global commodities. That’s means rising commodity prices could be a boon for countries where raw materials are grown, mined, produced and refined. The commodity price change related...
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...[pic] Term Paper On “Price behavior on Edible Oil” Submitted to:- Prof. Dr. Baqui Khalily (Course Teacher) Micro /Managerial Economics United International University Submitted by:- ID: - 112113042 SEC:- A Submission Date: -April 28, 2011 ACKNOWLEDGEMENT Firstly, all praise to almightily Allah who gives me strength to complete this report, I would like to pay my gratitude and respect to some important person for their own co-operation. Then I am very grateful to our course teacher, who gave me this opportunity for preparing this report of “Price Behavior on Edible Oil” Beside, that, he guided us to prepare this report in an organized manner. I am also very pleased to him for giving clear concept about this topic. Secondly I want to say that I am doing great deal of hard work for preparing this report. I have collected information from different shop and from different types of journal for this report. Finally, I am indebted to them who have directly and indirectly assisted me in conducting the study. I again want to give my cordial love and respect the honorable course teacher because from him I have learned a great deal of things related it this report’s hope that this report has been prepared for the fulfillment of the course requirement. LETTER OF TRANSMITTAL April 28, 2011 Prof. Dr. Baqui Khalily (Course Teacher) Micro/ managerial Economics ...
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...Confectionery refers to the art of creating sugar based dessert forms. Confections include sweet foods, sweetmeats, digestive aids that are sweet, elaborate creations, and something amusing and frivolous. Food and drink manufacture is one of Bangladesh's biggest industries. Within the industrial segments, the processed food industry in Bangladesh represents one of the major potential sectors in terms of its contribution to value addition and employment. The sector accounts for over 22% of all manufacturing production and employs about 20% of labor forces. All food processing enterprises account for 2% of the GDP. The food processing industry in the country is heterogeneous in nature displaying greater diversity in size, technology, quality of products, processing, preserving, marketing, and distributions systems. The sector is primarily dominated by small and medium enterprises with their strong linkage to the local production and high potential for processing, value addition and export. There are nearly 700 processed food manufacturing enterprises in the country including home-made processing units, of which, at least 30 enterprises are processing fruits and vegetables. These include processing of bakery, confectionery, fruits and vegetables, cereals, dairy, carbonated and non carbonated fruit juices, drinks, other beverages and various other food items. Bangladesh itself with nearly 150 million population posses a huge domestic market for processed food. Its importance has...
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...central bank’s target of 2 % inflation rate. The unexpected brief recession came about after the government introduced a sales hike in April 2014. The early 2015 economic data has shown signs of recovery with bigger Japanese companies announcing wage hikes but other indicators like the production manufacturing indicators (PMI) and households spending remain weak and that may mitigate its recovery. In the following discussion, we will discuss briefly the economic background of the Japanese economy after the war II and how it went into two decades of deflation. Further discussions will also focus on the economic stimulus package implemented by the Abe Administration (three arrows) and its effects on the economy. Brief background of Japanese economy from 1960 to 1990 and its “lost decades” According to an article by Sundar, A (2013) and Khan (2003), Japan began rebuilding its infrastructure and economy by investing heavily in capital equipment (30% of GDP) and began exporting its products. This resulted in huge trade surplus with the US. Khan (2003) then reported that the Japanese government signed the Plaza Accord in 1985, (which sought to weaken the major foreign currencies against the yen to encourage foreign capital investments for Japanese companies). The yen rose from (240 vs. US dollar) in 1985 to (80 vs. US dollar) in 1995. As a result, price of Japanese exports increases. Sundar, A (2013) elaborated that to cope with this rapid rise in yen, Japan’s monetary authorities...
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... Lindsey G. Silver Dr. Keith Dickinson BA 3374 International Marketing April 19, 2012 The electric car market in India offers only one product, Mahindra’s Reva. This is due to the lack of infrastructure support and the preference for cheaper cars. These operate on a regular charge from various electrical outlets instead of expensive foreign oil. The drawback is that the cars are an expensive buy. However, they are efficient and use cleaner energy. Also, the Indian government gives tax rebates for such purchases. The rising fuel prices in the country will create awareness of Electric Vehicle technology. As Indian oil companies increase fuel prices, car buyers could be facing some budget restrictions. Electric Vehicle (EV) technology may be the solution to beat the fuel price hike (Kannan, 2012, p. 1). Although consumers have begun to change to hybrid and diesel fuel, the cost is still greater than these options. The EV does not offer a variety of choices in the country and consumers are hesitant to change from gas to electric. The biggest advantage lies on its fuel economy. As the price of oil increases, this solution could improve lifestyles and a healthier environment. In addition to the greater cost, the Reva does not offer long distance capabilities. It runs about 80km per electricity charge because the lithium ion batteries hold a limited charge and have limited distance capabilities (Joshi, 2012, p. 1). Sophan Joshi, in his article...
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...hit by the current wave of inflation and oil price hike. The economy has been observing double digit inflation growth on point-to-point basis since July 2007. In Bangladesh, the correlation between per capita income and food weight in total Consumer Price Index (CPI) is one of the highest in the world and the economy is vulnerable to sharp hikes in fuel and non-fuel commodity prices. The BDTUS$ exchange rate has been depreciating steadily for some time, reaching a record high of BDT 72.70 per USD in January 2011, which has direct impact on food inflation that Bangladesh is currently experiencing. An International Monetary Fund (IMF) study shows food prices on headline inflation has been a staggering 55.9 percent in Asia in 2007, whereas the figure was 34.1 percent in the 2000-06 period. The researchers highlight that a further depreciation of the BDT could lead to additional cost push inflation for Bangladesh. This article attempts to investigate causes and consequences of inflation on the economy of Bangladesh. This paper also reviews the past record of the inflation and makes a forecast on the possible movement of inflation. At the end on the paper the researchers forward some strategic points that might be useful to reduce inflation. Keywords: Food inflation, oil price hike, general inflation, world food price Bangladesh. 1. Introduction Rising rate of inflation has become a serious concern in Bangladesh in recent years. The prices of essential commodities have gone up, and...
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...primarily an agrarian economy. 66% of in Bangladesh people are work in agriculture sector. Nowadays price hike is one of the main concerns of Bangladeshi people. Though their income is not increase as much as need but their expenses are increases day by day. As a result people consume more than their income. And poor people are getting poorer day by day. Government has taken some short-term policies but those are not paying off. In this report we try to understand that why price hike in Bangladesh, what is the reason behind it an, what consequent are arises among Bangladesh people for these unsustainable price hike in consumption goods and what are the initiative measures government can take to at least make the price level sustainable. What is Inflation? Inflation is the rise in general level of prices of goods and services. It can be said in other ways that inflation is the decrease in value of money. It means that • Each dollar can purchase fewer amounts of goods and service then previous. • It reduces the purchasing power of the currency. Inflation does not mean that all prices are increasing, even during period of rapid inflation; some prices may be relatively constant while others are falling. The troublesome aspect of inflation is that prices rise unevenly, some raises sharply, some slowly and some don’t rise at all. The main measure of inflation is the consumer price index. Classification of Inflation [theoretical view]: Economists distinguish between two types...
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...Inflation Trends and Poverty in Bangladesh CONTENTS ABBREVIATIONS .................................................................................................................ii EXECUTIVE SUMMARY ....................................................................................................iii I. INTRODUCTION ....................................................................................................................1 II.INFLATION A. What is Inflation B .How is it measured C. Inflation and Interest rates D. Inflation and Investments Types of Inflation II. TREND OF MACROECONOMIC PERFORMANCE AND POVERTY REDUCTION INITIATIVES IN BANGLADESH ......................................................2 A. Growth Performance ...............................................................................................2 B. Savings and Investment ..........................................................................................2 C. Inflation ...................................................................................................................3 D. Fiscal Sector Developments ....................................................................................3 E. Macroeconomic Challenges of Bangladesh ............................................................4 F. Medium-term Macroeconomic Framework.............................................................5 G...
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...Management Department Assignment Cyclical Effects of Inflation in the Economy of Bangladesh Course Name:- Micro Economics Course Number:- 1208 Submitted To Mr. Shah Redwan Chowdhury Assistant Professor Management Studies Jagannath University Submitted By Amity (Group-07) (114922-114940) 6th Batch, Sec:-B Management Studies Jagannath University Sl/No | Name | Roll | Status | 01 | Abul Hasan Emon | 114922 | Absent | 02 | Ashif Manowar Oli | 114924 | Present | 03 | Fatema Tuz Zohora | 114926 | Present | 04 | Tanvin Haque Mitara | 114928 | Present | 05 | Md. Rafiqul Islam | 114930 | Present | 06 | Khandaker Arif Hossain | 114932 | Absent | 07 | Touhidur Rahman Al-Baky | 114934 | Present | 08 | Rajib Sarker | 114936 | Absent | 09 | Bidyut Dey | 114938 | Present | 10 | Md. Farhad Hossain | 114940 | Present | Acknowledgement:- We have taken efforts in this assignment. However, it would not have been possible without the kind support and help of many individuals. We would like to extend our sincere thanks to all of them. We are highly indebted to Mr. Shah Redwan Chowdhury Sir for his guidance and constant supervision as well as for providing necessary information regarding the assignment & also for his support in completing the project. We would...
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...How Crude Oil Prices Affect Gas Prices Crude oil prices make up 71% of the price of gasoline. The rest of what you pay at the pump depends on refinery and distribution costs, corporate profits, and Federal taxes. Usually, these costs remain stable, so that the daily change in the price of gasoline accurately reflects oil price fluctuations. (Source: EIA, FAQ, December 6, 2013) It usually takes about six weeks for oil price changes to work their way through the distribution system to the gas pump. Oil prices are a little more volatile than gas prices. This means oil prices might rise higher, and fall farther, than gas prices. Historical Oil and Gas Prices: Oil and gas prices have been especially volatile since the 2008 financial crash. Here's a look at their peaks and valleys, and what caused the price swings. * 2014 - Prices remained around $100/barrel. That's because the U.S. has plenty of shale oil. 2013 - Oil rose swiftly to $118.90/barrel on February 8, sending gas prices to $3.85 by February 25. Prices had started rising earlier than normal thanks to Iran's threatening war games near the Straits of Hormuz. What Causes High Oil Prices?: Like most of the things you buy, oil prices are affected by supply and demand. More demand, like the summer driving season, drives higher prices. There is usually less demand in the winter, since only the Northeast U.S. uses heating oil. However, oil prices are also affected by oil price futures, which are traded on the commodities...
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...GOVERNMENT SHOULD NOT INCREASE THE FUEL PRICE ------------------------------------------------- Abstract This essay is about the Government Should not Increase the Fuel Price. Nowadays the fuel prices are increased, and it is eventually going to affect each and everything that we use in our day to day life. Means that there are lot of effect once fuel price increase. For example, the rich get richer, and the poor get poorer. It is a chain reaction once started will affect all. The thesis statement of this essay is government should not increase the fuel price because the cost of doing business will continue to rise, increase the food price and the society will be greatly affected. The topic sentence for Body Paragraph 1 is government should not increase the fuel price because the cost of doing business will continue to rise and the topic sentence for Body Paragraph 2 is other than that, government should not increase the fuel price because it will increase in food price. Body Paragraph 3 is the refutation and the topic sentence is the government should increase the fuel price because it can reduce traffic and pollution. As we know, fuel has become an indispensable part of our day-to-day life, and we can’t imagine our life without it. There are mishaps and our life must be incomplete without them. Nowadays the petrol prices are increased, and it is eventually going to affect each and everything that we use in our day to day life...
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...concept of supply and demand, how a business establish prices, how individuals make efficient decisions and how individuals cooperate with one another. Microeconomics is not an explanation for what happen in a...
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