Newsmaker: Gokongweis to Get Petron?
According to news reports, the Gokongwei Group of Companies, JG Summit, wants to buy the government’s 40% shareholdings in Petron, our country’s largest oil refiner. If this happens, Petron will become fully-privatized and some people aren’t too happy with this because they believe that the government will not be able to control fuel prices in case there’s an oil crisis. Think of it this way: the present rice crisis is being managed by the government’s affordable NFA Rice. Link that now to an oil crisis - If the government cannot source cheap fuel, how will they be able to control the effects of the crisis? Where will they get the oil counterpart of NFA Rice? (Maybe they can call it “Gloria Gas”)
In every issue, you have the naysayers, the fence-sitters and the risk-takers. In this case, the risk-takers are the ones who have faith in the Gokongweis. After all, we’re talking about the family that launched the Philippines’ number one low-cost carrier, Cebu Pacific. As an OFW in the Southeast Asian region, Cebu Pacific has given me more opportunities to spend more time with my family and friends in the Philippines. And data shows that more Filipinos can now afford the luxury (and convenience) of flying, thanks to the cutthroat competition among airlines. Bottomline: Sinong panalo? The consumers!
The Gokongweis have also given us Sun Cellular. Their unlimited talk-and-text package has forced Globe and Smart to adjust their rates. Sinong panalo? Not just Sun subscribers but all the cellphone users!
Another Gokongwei product that’s also sold here in Vietnam, is C2. I remember reading Mr John Gokongwei (posted in Ris’s blog) and he said that C2 is challenging the dominance of foreign-owned cola companies in the Philippines. C2 sells 30 million bottles per month. Sinong panalo? The Filipino consumers because we now have a choice of whether to have a fizzy drink or healthy tea.
So will the Gokongweis get Petron? It’s a long shot but I’m hoping it will happen. Mainly because I believe in the Gokongweis’ habit of lowering the prices and their knack for competing against established players. If they do get Petron, I hope the Gokongweis can play David once again, in an arena full of oil Goliaths.
Quote of the Day: Jose Ortega y Gasset
We distinguish the excellent man from the common man by saying that the former is the one who makes great demands on himself, and the latter who makes no demands on himself. — Spanish Philosopher Jose Ortega y Gasset (May 9, 1883 - October 18, 1955)
Life is Fun: Brazilian Town Celebrates 7th Annual Orgasm Day
Citizens of a small town in Brazil are celebrating “Orgasm Day” today! This special holiday was started in 2001 by the officials of Esperantina, Brazil to improve the satisfaction of women and to improve the relationships of couples. Don’t get too excited, boys - It’s not what you think. Orgasm Day is celebrated by having lectures about sex, impotence and the importance of orgasm. Eva Ensler’s play, “The Vagina Monologues” is another favorite in the annual celebrations.
The Power of the Word
The Lord works righteousness and justice for all the oppressed. — Psalm 103:6
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About this post:
This is the daily post of Lester Galvez Cavestany entitled Perlas. The information here is presented to you in bite-sized servings so that it’s quick and fun to read. It has four parts: 1) Newsmaker - news and views that matter to you; 2) Quote of the Day has history, quotes and biography tidbits; 3) Life is Fun gives you a healthy dose of medicinal laughter; 4) And lucky last, we have The Power of the Word which can serve as your daily spiritual bread.
If you enjoyed reading this post, come back to this site every day and be sure to share Perlas with your friends.
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References:
Newsmaker:
http://www.manilatimes.net/national/2008/may/08/yehey/business/20080508bus1.html
http://www.naptimerocks.com/2007/12/05/when-your-backyard-isnt-enough/
Quote of the Day:
http://www.answers.com/topic/jos-ortega-y-gasset-2
http://www.brainyquote.com/quotes/authors/j/jose_ortega_y_gasset.html
Life is Fun:
http://www.abc.net.au/news/newsitems/200205/s552335.htm
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105×3219835
http://www.ananova.com/news/story/sm_1389681.html
The Power of the Word:
http://www.nccbuscc.org/nab/readings/050908.shtml
6 Responses to “JG Summit Wants Petron, Brazil’s Orgasm Day, and Jose Ortega y Gassett Quote”
Better to transfer the 40% government share to the Filipino users and without chinese blood thru every gasoline receipt.
[Reply to this comment]
well, as far as costs are concerned (and being a JG employee for quite a while), i think you do have a point that JG may be able to bring more competitiveness in the fuel industry. It’s just that oil isn’t as flexible as say, telecoms and fast moving consumer goods. let’s see.
[Reply to this comment]
The government should get out of running businesses (like NAPOCOR, PNOC, Petron, and Land Bank). What it should provide instead are laws that will protect the individuals and consumers from corporate abuse, and enforcing it properly and equitably. I don’t see any reason why privatizing Petron will become a problem if the government can really go after cartels and punish them for price-fixing, for example. The current problem of rice is not best solved by squandering public money by subsidizing the poor, nor the oil crisis by subsidizing the gasoline consumers. But of course being the Philippines, this is next to impossible since the government is run by people who have businesses to protect and GOCC are milking cows for friends and families of those in Malacanang.
The problem of NFA is that it’s the taxpaying sector of society subsidizing the mostly non tax-paying poor. Taxpayers cannot subsidize the poorest 40% of the population indefinitely. What the poor needs is help to find meaningful work to make them more productive and so they can afford to buy their own rice from the market, and not be liabilities - provide a labor market that does not discriminate and where redress is available, and provide a business climate with low barrier to entry and by protecting businesses from unfair competition specially by big businesses, 3) less intervention in private disputes (leaving them to the court system) and by refusing to nationalize private assets. Let the market work with less government intervention except in making the market fair to all concerned (business and consumers alike) by enacting intelligent legislation and enforcing them fairly.
[Reply to this comment]
This is not for or against full privatization of Petron. Its about privatization. I think privatizations ought to have been opened to ALL. Even to carpenters if they want to buy one share, whatever they can afford, in what ever it is being privatized.
[Reply to this comment]
Instead of a negotiated one. That’s where worms come in!
[Reply to this comment]
chinese worms?
Feel free to express your self