Coming from a guy who rarely uses public transport— i have to ask the question: why can’t consumers enjoy reduced transportation prices?

The price of oil is close to US$100 per barrel (104 to 109). you can find the numbers over at bloomberg (15 minute delay per change). Next month could be an entirely different picture.

Yesterday was all about the President asking oil companies why they haven’t reduced prices. While this is a half-step to outright intervention that I believe this is wrong. It defeats the whole purpose of a free market and an oil deregulation law. Misplaced market intervention is just plain wrong.

Let the small players differentiate themselves from the big three. Why do we insist that all of ‘em have the same prices whether high or low? So lets all buy our oil from the lowest price. But that’s not always the way is it?

By the same argument, BMW who makes cars should be priced the same as a Kia. They both have different target markets. they have build quality differences. Why do we keep on interfering with how our oil players price their products?

A couple of days ago I was in Greenhills buying a Playstation 3 (which by the way is an awesome piece of engineering). One store priced at 17k, another at 19k. same product. same 40GB spec. One difference was that the 19k guy offered a product replacement within 3 months if the machine breaks. i took the 19k– i wanted the comfort zone. that was my deal breaker.

Another person would have chosen the lowest price, which would be his preference. Having learned from my  buying experience the comfort zone of care is phenomenal.

My point being the nature of economics is that we buy products and services depending on how good the deal is to us. That’s free market. It is good when two parties agree to do business.

Now, here comes transportation. At the height of oil they demanded the right to raise prices. Prices went up and now transportation doesn’t want to reduce prices because their argument is that oil has not gone down substantially. Why can’t we deregulate our transport industry?

Why insist to be shackled by 19th century thought?

Why not let every jeep operator determine what their prices are? They have variable cost anyway. Some may be willing to charge lower because their expenses may be lower. Others may want to charge higher because they can afford softer seats or air conditioned jeeps. We may see better quality jeeps to cheap ones that are bang for the buck. And others seeing that the prices may not be worth his salt to pay, will just walk.

My point being— why not stop this farce called socialism and regulated markets and get it on with free markets. Market intervention of any kind is simply bad for everyone. Do not reduce prices— deregulate the market.

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