The New War

This is not an exaggeration on our part. Certain families, that have always been self-sufficient and financially capable, are now feeling the blows one way or another. Young professionals or working individuals sarcastically point out a perfect timing, enjoying whatever earnings they could collect, in managing a certain lifestyle and possibly a car. We are living in a war unlike any other. We are living a war against prices and against basic commodities. What these prices are doing to any normal Juan is torture. The normal Juan is not able to enjoy his earnings anymore. He is reduced to just meet his basic needs to survive. No more additional positive areas of expenditures. Normal Juans with limited resources are living and waiting for the next payday. In some worst cases, they are not able to come to work due to lack of funds to go to work. Bad budgeting skills choked by sky rocketing prices.

Primary answer to financial woes is usually to adjust or budget. But while budgeting, we cannot deny the stress and anxiety we feel. It's like we are helpless in this war. War against prices does not promote empowerment. It seeks the opposite. We bend and adjust and wait for the blows to come. We have adapted a sort of attitude of waiting, sighing, bending and adapting. But keep a constant smiling face to uphold good psychological morale, which seems to be the only thing cost-free.

I've adapted to the tune of my boyfriend screeching his frustration everytime we pass by his regular gas station and we see a PISO increase per liter. I would constantly assure him that what he wasn't hallucinating. I would share with him what I know about the latest news about oil pricing worldwide. Sometimes, I'd drive home the painful hypothesis when I would tell him those dim forecasts and predictions. There goes his good mood. Then there's silence. Sometimes, even logical and rational human beings just wish to acquire the skills of teleportation.

With all these oil and basic commodity prices going up, one can presume that this is not an ideal time for starting a family. Families nowadays, even financially capable ones have to adjust their expenditures to thousands. Even the rich are tugged down. According to Manila Standard:

Families belonging to the first decile are the poorest 10 percent, while the wealthiest belong to the 10th decile.

Based on a simulation by the National Economic and Development Authority, the families under the first decile would have a deficit average family savings of P3,106, while the second and third deciles would have negative impact of P1,574 and P280, respectively.

From May 1 to 15, the Department of Energy said the average price of the regional benchmark Dubai crude and imported diesel rose above $91.70 per barrel and $113.00 per barrel, respectively.

In addition, as of May 21, the prevailing price in Metro Manila for diesel ranged from P41.67 to P43.97; gasoline, P49.33 to P51.57; kerosene, P46.15 to P49.30; an 11-kilogram LPG cylinder, P575.50 to P627.25.

If oil prices increase to $115 a barrel, Santos said the average household expenditures of those in the lowest-income decile will increase by P1,789. ”At this price, families in the fourth decile would now also register negative average family savings, since expenditures would increase by P3,970.”

At $125 per barrel, families in the first decile would increase expenditure by P1,852; second decile, P2,744; third decile, P3,435; fourth decile, P4,134; and fifth decile, P5,000. The families under ninth and 10th deciles would have additional expenditure of P12,744 and P23,786.

In an event that the price of Dubai crude reaches $180 per barrel, the additional expenditure for households in the first decile is P2,154; second decile, P3,204; third decile, P4,038; fourth decile, P5,191; and fifth decile, P6,336.

For the 10th decile, the average additional expenditure is P27,919.

At the $200 Dubai oil price level, the sixth income decile is now vulnerable to experiencing deficit. The average family annual expenditure is expected to increase by P7,765.

For those families in the first-decile bracket, a $200 a barrel would mean an additional expenditure of P2,269; second decile, P3,380; third decile, P4,268; fourth decile, P5,191; and fifth decile, P6,336.

For families in seventh decile, the impact is P9,646. Those in the eighth decile, P12,114; ninth decile, P16,131; and 10th decile, P29,493.

A study released by the United Nations in October showed that over the last three years, households in the region—including the Philippines—are paying, on average, 171 percent more for cooking fuels, 120 percent more for transportation, 67 percent more for electricity, and 55 percent more for lighting fuels than two years ago.

What do people do? Just like what we are known to do, we adjust with everything else that comes our way. I do not question the human spirit and the resilience of mankind. Like any other war, this too shall end, but till when, no one can say. We are left to just live day by day, if living is actually is synonymous to struggling more and working harder than before.