Missing Energy Supply
06-Feb-2009 10:25 AM

Some time ago last year, rice experience shortage. Although some says that the shortage is artificially done and cause by rice hoarders it resulted the rice price increase and rationing of rice to some parts of the Philippines. NFA rice is the PGMA government answer to the rice price increase.

Before rice, now its cooking gas.

The price for a 11kg of cooking gas fetch now for P600 to 690 in some place.

The government investigates on this matter, the result is that the price increase is artificial and cause by hoarding cooking gas of small suppliers and dealers. The Big oil companies that supply cooking gas to the dealers insist that cooking gas supply is enough.

The law of supply and demand dictates that
"If the supply decreases the price increases"

Hoard cooking gas will create artificial shortage;
artificial shortage will in turn increase the price.

What had happened to rice now is happening to cooking gas.
Let's hope that there will be no rationing of cooking gas after this.

Mistake of the risk
This is the biggest mistake hoarders make; you can hoard rice but not cooking gas.
Unlike rice, cooking gas has many alternatives like charcoal, wood and electricity.
There gain on doing this will be short lived; people will readily switch to the alternative cooking energy rather than buy expensive cooking gas. The end result of there hoard is an over supply of cooking gas. Over supply will mean price decrease.


Battle of the stove
I have seen so many types of cooking stove. Charcoal fueled cooking stove is I like the most. Charcoal has that smell and taste that add flavor to the food. Innovation is done to charcoal fueled stove now a days.

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