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Writer's pictureMaria Erika Coleen Nidea

Small business owners struggle to survive due to oil price hike

Updated: Jun 3, 2022

Written by Maria Erika Coleen P. Nidea Published May 8, 2022


Basic essential commodities and services have constantly become more expensive because of the high oil prices in the Philippines, adversely affecting many small business owners to adjust their lifestyles and budgets.


Such is the case of Aling Gaga, 46, and her husband, Mang Yoyoy, 48, who are food stall vendors from Quezon City. After two years of running their calamari business, the couple has only started to recover from their financial losses due to the COVID-19 pandemic. Now, another looming challenge threatens them—grappling with surges in liquefied petroleum gas (LPG) prices.


Like many working Filipinos who own small businesses, the couple works hard every day — braving the scorching heat to set up their food stall, fanning the food until their arms get fatigued, and serving dozens of customers at once — to provide for their family.


However, they said their efforts in business had not borne any fruit as the consistent price hike put them in a bind and hindered them from saving up for their future endeavors. “Sa amin dito, dati ₱120 lang ang Super Kalan. Ngayon, umaabot na ng 250. Malaking pagbabago sa negosyo at malaki rin ang epekto sa pang-araw-araw naming gastusin,” Aling Gaga frustratingly said.


(In our local area, Super Kalan was only ₱120. Now, the price has increased to ₱250. It brought a significant change in our business and a big effect on our daily expenses.)


“Itong ino-order naming kalan, dalawang araw lang tumatagal kasi ‘yung lutuan walang patay-patay tapos nilulutuan pa namin doon sa bahay kaya madali lang siya maubos,” she added.


(The LPG tank that we ordered only lasted two days because when cooking calamari, the propane should be continuously on, and we also use it in our house; that’s why it is fast to get empty.)


Price Hikes


Due to the ongoing Russia-Ukraine conflict, oil prices have increased to record highs in the past months, putting many consumers like Aling Gaga and her family in a difficult position with their daily expenses.


In an advisory, Petron, a gas company, said it would put a P5.75 per kilogram rollback in household LPG prices effective on May 1.

The price adjustment equals a price reduction of P63.25 for an 11-kilogram cylinder.

In a separate advisory, LPG solutions company Solane said its branded LPG would drop by P5.73, starting on May 1.


Recognizing the struggles of those severely affected by the previous oil price spike, like Aling Gaga and Mang Yoyoy, lawmakers have proposed necessary mitigating measures, such as lifting the excise tax on oil products and providing subsidies for the millions of poor Filipinos.


Consequently, President Rodrigo Duterte ordered the Department of Finance to raise the P200 subsidy for low-income families to P500.


Aling Gaga acknowledged that the price drop and several mitigations would help her family. However, she said she cannot help but worry that this will not be enough, since she expects a strain on business and household budgets.


“Ang laki kasi ng epekto sa amin ng pagtaas ng LPG. Super laki talaga kasi pati harina, mantika, asukal–lahat talaga tumaas. Nagbabayad pa kami ng renta sa pwesto. Ngayong nagtaas yung gas at mga pangunahing bilihin namin, mas matumal na ang kita at minsan hindi na rin namin makuha yung puhunan namin,” Aling Gaga said.


(The effect of the LPG price hike is significant because even the prices of flour, cooking oil, and sugar also increased. Additionally, we also pay for the rent of our stall spot. Now that gasoline and primary expenses have increased in prices, our income has been scarce, and sometimes we lack a budget for our capital.)


“Minsan talaga hindi mo maiwasan sa negosyo na malugi ka sa sobrang tumal,” she added.


(Sometimes, in business, you cannot avoid financial loss due to the dullness of income.)


Despite their difficult circumstances, Aling Gaga shared how she tries to manage their business during tough times. According to her, she would shorten the cuts of each calamari to cut back on their losses. “Hindi naman namin pwede taasan yung presyo namin dahil baka hindi na kami balikan ng mga suki,” she expressed.


(We cannot just increase the price of our calamari because our customers may not consider buying from us again.)


As a mother and business owner, Aling Gaga said that her perseverance is what she must always possess as she believed that the current administration is unreliable. “Basta ang sa akin na lang eh, hindi ako titigil sa ganitong hanapbuhay namin kasi ito lang din naman ang makakaya namin,” Aling Gaga uttered.


(For me, I won’t stop in this kind of work because this is the only thing we can afford to do.)


“Magkakaroon lang naman kami ng magandang buhay kung magsisikap kami kahit minsan eh kulang na kulang pa nga at wala nang ma-ipon,” she added.


(We can only achieve a good life if we continue diligence despite having insufficient budget and savings.)


Meanwhile, Mang Yoyoy shared his dreams of becoming financially stable to give his wife and 12-year-old daughter a better life and his fear of not being able to because of their present financial problems. “Nakakapagod lalo na sa hirap ng buhay, pero para na rin sa anak ko ito. Gusto kong makapagtapos siya ng pag-aaral para gumanda ang buhay niya,” Mang Yoyoy shared.


(My work is tiring; the poor life contributes to the struggle. But I’m doing this for my daughter. I want her to finish her studies so she can have a good life.)


Mang Yoyoy also hoped that the government would provide more solutions to help people like them. “Sana mababaan pa nila lahat ng bilihin lalo na yung mantika at gas. Malaking bagay talaga ‘yun lalo na sa amin na kapos,” he said.


(I hope that they can decrease the prices of commodities, especially cooking oil and gas. It will be a big help for people like us who are financially incapable.)


For the couple, the real challenge is sustaining their day-to-day needs, emphasizing how the oil price increase would be an impediment in their attempt to recover from the struggles caused by the cascading effects of the oil price surge.


Mang Yoyoy said, “Kaming mga normal na mamamayan na naghahanap buhay ang isa sa pinaka-nahihirapan sa ganitong pagbabago. Kung magpapatuloy ito, kakayanin pa ba naming buhayin ang pamilya namin? Ito na lang ang kaya naming hanapbuhay, paano naman kami?”


(We, the [lower] working class who are [economically challenged in] looking for a source of income, are one of the most affected by this kind of change. If it continues, can we even still provide for our family? This is our only source of living, [and if it continues,] what will happen to us?)


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