[airstrip1]

[i] Philippine civil servants are to enjoy longer weekends from next week, thanks to soaring oil prices.

The government has shortened its official working-week from five to four days for the next two months to reduce energy demand, as part of a desperate attempt to lower its 300,000 barrels a day of oil imports.

“The current high prices of oil in the world market make it imperative that we conserve energy and the government has to head the way in its effort,â€

[Tanada]

[quote="airstrip1"][i] Philippine civil servants are to enjoy longer weekends from next week, thanks to soaring oil prices.

The government has shortened its official working-week from five to four days for the next two months to reduce energy demand, as part of a desperate attempt to lower its 300,000 barrels a day of oil imports.

“The current high prices of oil in the world market make it imperative that we conserve energy and the government has to head the way in its effort,â€

[cube]

I never understood why countries would subsidize fuel....there's no logic in it. The only reason I can think of is maybe people must really like subsidies.

It gives you the illusion that you're getting something for nothing.

I think when PO hits we're going to see ALOT of subsidies get cut..not just oil but just about everything across the board.

[jdmartin]

I never understood why countries would subsidize fuel....there's no logic in it. The only reason I can think of is maybe people must really like subsidies.

It gives you the illusion that you're getting something for nothing.

I think when PO hits we're going to see ALOT of subsidies get cut..not just oil but just about everything across the board.

Quite a few of the countries that subsidize oil are regimes that are just barely hanging on to power. Subsidizing fuel so the prices remain low help keep the masses from revolting. A lot of countries will yank back on other stuff before they seriously cut off fuel subsidies.

[Choon]

Quite a few of the countries that subsidize oil are regimes that are just barely hanging on to power. Subsidizing fuel so the prices remain low help keep the masses from revolting. A lot of countries will yank back on other stuff before they seriously cut off fuel subsidies.

A lot of my fellow countrymen consider fuel subsidies to be a God-give right. Back in '05 when the subsidies were reduced twice, there was a lot of hoo-ha and noise-making about "how evil and corrupt the oil companies/government are". I believe this is true to a certain extent, but it sickens me to see people who think that we deserve cheap fuel simply because we're an oil exporting country (and not much of one at that). We won't have that excuse come 2010.

Hm, I always thought that fuel subsidies were designed to prop up a (fake) booming economy at the expense of being spoiled on ultra-cheap fuel, not to keep the sheeple in place. Cable TV and Starbucks does that.

[Twilight]

There is a gem of an Idea, make every work week 4 days instead of 5 and maybe people will drive less. Or then again maybe not, would probably work in the winter but reverse itself in the summer.

The UK had that experience with the Winter of Discontent, I would treat it as a sign of acute distress rather than a bold initiative.

[Newsseeker]

I never understood why countries would subsidize fuel....there's no logic in it. The only reason I can think of is maybe people must really like subsidies.

It gives you the illusion that you're getting something for nothing.

I think when PO hits we're going to see ALOT of subsidies get cut..not just oil but just about everything across the board.

The countries that subsidize it generally have dirt poor citizens.

[wisconsin_cur]

Now we are starting to get somewhere:

Asian Governments to cut subsidies

Asian governments on Thursday moved to cut energy subsidies to protect their finances and those of state-owned energy companies in the face of soaring oil prices.

As crude oil pushed through $135 a barrel for the first time, Taiwan, Malaysia and Indonesia announced plans for urgent action to free prices or cut subsidy costs. China denied rumours of an imminent increase in retail prices, but may relax price controls.

“It is probably more affordable for a country like China to subsidise than Indonesia,” said Peter Gastreich, oil and gas analyst at UBS in Hong Kong. “But if oil prices keep going up, it is simply not in any country’s best interest to keep subsidising these prices indefinitely.”

In Taiwan, the first act of the newly elected administration of President Ma Ying-jeou was to abolish price controls on petrol and diesel from June 1. The new government also said it would raise electricity prices in July.

Malaysia said it would soon announce a new petroleum subsidy scheme to keep its fuel subsidy bill at around last year’s level of M$40bn ($12.5bn) in spite of rising oil prices. With oil at $130 a barrel, the bill would reach M$48bn in the current fiscal year, exceeding the M$40bn that the government plans to spend on infrastructure and other development projects.

Nor Mohamed Yakcop, Malaysia’s second finance minister, also suggested that the government would take the unpopular step of raising electricity tariffs. “If there is a rise in the price of [natural] gas, we will have to pass that along, since we are not going to see Tenaga [the state power monopoly] lose money,” he said.

The Indonesian government said it would “soon” go ahead with a plan to raise fuel prices by an average of 28.7 per cent.

The recent surge in the price of oil has been particularly painful for Asian oil importers such as India, where imports cover 73 per cent of petroleum needs.

But it has also deprived state energy companies of additional revenues to make bigger investments in exploration, as well as downstream infrastructure.

India’s largest state-controlled pump operator, Indian Oil Company, is seeking shareholders’ approval to double its borrowing limit and help alleviate a cash crunch caused by price controls.

Analysts warned that planned cuts in subsidies and controls would have to be followed by more substantial energy market deregulation.

The Chinese government said that stock market rumours of an imminent increase in domestic fuel prices were “groundless”.

However, analysts forecast that Beijing would eventually endorse subsidy cuts.

[3aidlillahi]

In Taiwan, the first act of the newly elected administration of President Ma Ying-jeou was to abolish price controls on petrol and diesel from June 1. The new government also said it would raise electricity prices in July.

Wow. He was elected with promising an abolishing of price controls of fuel. We're trying to lower our prices in US national politics and the Taiwanese are open to increasing them (to their 'natural' levels). Good job?

[rockdoc123]

I think they still have a long way to go in Indo and Malaysia to bring their subsidized prices up to global levels. In Malaysia it's been about 50 cents/litre and Indo around 70 cents/litre compared to say $1.25/litre in Canada.

[Tyler_JC]

You've got to look at Taiwan on a map.

Does a small island nation next door to its mortal enemy want to be dependent on foreigners for its energy?

Cutting subsidies is generally a good idea, especially when the subsidy is encouraging people to be wasteful.

[Fishman]

May bring on some good rioting in the streets, perhaps a government overthrown. Sound like more popcorn time

[phaster]

In china cutting subsidies I read will mostly apply to gas bought at gas stations (think of it as window dressing) to try an appease politicians around the world (who have no idea about the big picture, or are too afraid to tell their own citizens that in fact they are part of the problem of ever increasing expectations).

Basically only 4% or so of the population in china has a private car, and those individuals will be the ones facing higher gas prices at the local gas station.

Demand for fuel will be somewhat be cut in those areas, but since china is central command economy with lots of government owned enterprises in the trasportation sector like rail ways, bus lines and airlines, the analysis I read is fuel subsidies in those sectors will not be cut so I don't expect the price of oil to go down anytime soon because the demand of people in china, india as well as the rest of the world is for a mobile life style just like people in the USA has had since the 1920's....

Now we are starting to get somewhere:

Asian Governments to cut subsidies

Asian governments on Thursday moved to cut energy subsidies to protect their finances and those of state-owned energy companies in the face of soaring oil prices.

As crude oil pushed through $135 a barrel for the first time, Taiwan, Malaysia and Indonesia announced plans for urgent action to free prices or cut subsidy costs. China denied rumours of an imminent increase in retail prices, but may relax price controls.

“It is probably more affordable for a country like China to subsidise than Indonesia,” said Peter Gastreich, oil and gas analyst at UBS in Hong Kong. “But if oil prices keep going up, it is simply not in any country’s best interest to keep subsidising these prices indefinitely.”

In Taiwan, the first act of the newly elected administration of President Ma Ying-jeou was to abolish price controls on petrol and diesel from June 1. The new government also said it would raise electricity prices in July.

Malaysia said it would soon announce a new petroleum subsidy scheme to keep its fuel subsidy bill at around last year’s level of M$40bn ($12.5bn) in spite of rising oil prices. With oil at $130 a barrel, the bill would reach M$48bn in the current fiscal year, exceeding the M$40bn that the government plans to spend on infrastructure and other development projects.

Nor Mohamed Yakcop, Malaysia’s second finance minister, also suggested that the government would take the unpopular step of raising electricity tariffs. “If there is a rise in the price of [natural] gas, we will have to pass that along, since we are not going to see Tenaga [the state power monopoly] lose money,” he said.

The Indonesian government said it would “soon” go ahead with a plan to raise fuel prices by an average of 28.7 per cent.

The recent surge in the price of oil has been particularly painful for Asian oil importers such as India, where imports cover 73 per cent of petroleum needs.

But it has also deprived state energy companies of additional revenues to make bigger investments in exploration, as well as downstream infrastructure.

India’s largest state-controlled pump operator, Indian Oil Company, is seeking shareholders’ approval to double its borrowing limit and help alleviate a cash crunch caused by price controls.

Analysts warned that planned cuts in subsidies and controls would have to be followed by more substantial energy market deregulation.

The Chinese government said that stock market rumours of an imminent increase in domestic fuel prices were “groundless”.

However, analysts forecast that Beijing would eventually endorse subsidy cuts.

[ralfy]

"Asia faces rocky road in securing energy needs"

http://www.reuters.com/article/2011/10/ ... IO20111031