Snowball impact of escalating fuel prices

Navigating life post-pandemic was always going to be tricky. We all knew that as COVID-19 stretched out over two years, returning to post-pandemic life would be challenging. Businesses are still struggling, and inflation and impending recession are difficult hurdles to overcome. I don’t think we were adequately prepared for just how hard it would be. Then again, in that aspect, we are par for the course as we weren’t ready for the impact of the global health crisis either.

And it’s not just the Philippines. Countries all around the world are struggling to find the best way forward. Some are rushing to get back to life pre-pandemic, and some are being more cautious and forward-thinking. Countries like the United States are looking to firmly put COVID-19 in the rearview mirror with mask mandates and the like no longer a priority. Other countries are in lockdowns anew.

So what’s the best plan moving forward? No one can say for sure. This is unchartered territory for everybody, and there’s no guidebook on successfully emerging from a pandemic. We’re all just doing the best we can. What’s more – along with coming back from a pandemic that left economies around the globe crippled - we also have to deal with rising prices, inflation and a looming recession.

Economists have always said the recession was going to be a problem. But knowing that it would be and having a plan to mitigate it are entirely different things. Right now, we are all facing the everyday problem of rising costs. This is beginning to impact everything we do and the government’s plans moving forward.

The rising fuel cost is the biggest and most pressing concern for almost everyone worldwide. Since early this year, this was already a concern. With the situation in Russia and Ukraine not getting any better, pump prices have only worsened. Just the other day, a doctored photo of gas prices was circulating online, and because things keep getting worse, many netizens instantly believed it to be real.

Gas prices are a significant problem because it impacts everything. Some companies are trying to offer transportation as part of their packages or benefits because employee salaries can no longer pay the cost of gas to get to work every day. Some schools are even reconsidering 100 percent face-to-face classes every day next school year because public transportation options keep decreasing daily.

It’s a real problem, and it’s getting worse daily. Filipinos who continue to get stuck in traffic daily may not believe it, but recently there have been fewer vehicles on the road. And the simple reason is that more and more people are trying to find alternative ways to get where they need to be. At the same time, public transport vehicles are cutting back because even the hike in fares isn’t enough to cover the rising cost of gas.

Many operators have grounded jeepneys or reduced trips in an attempt to save on fuel costs. The government’s free rides help commuters a little but cut into the earnings of mass transit operators. Plus, it’s a stop-gap solution and not one that is sustainable. This problem is going to continue getting worse unless we find a solution.

Many public transport operators and drivers are hanging it up and looking for other sources of livelihood as theirs is no longer viable to feed their families. While this is understandable, it will impact many other areas of daily life. Soaring fuel prices don’t exist in a vacuum. The rising fuel costs will impact the supply chain, which will cause a rise in the prices of essential goods and necessities, etc.

It’s a chain reaction. While some public transportation operators have been cutting down on their fleet, many motorists are simultaneously opting to leave their cars at home. This leads to longer, extremely slow-moving lines for buses and jeepneys and commuters having a more challenging time finding a ride and getting to work.

This will, undoubtedly, impact companies trying to get back on track post-pandemic. Commuters account for most of the workforce, and we all know that even pre-pandemic mass transportation was already an issue. Companies may have to explore hybrid work models even more if they want to create a sustainable way of working. At least for the time being, it may be better not to have to make workers come in every day.

Even schools that were ready to push daily in-person classes may have to rethink this plan for potential hybrid schedules in light of transportation woes. At this point, the government is going to have to find a way to address fuel costs because things will continue to get worse before they get better.