debate- THE RISE OF PETROLEUM COSTS IS NOT BENEFICIAL FOR MANKIND
THE RISE OF PETROLEUM COSTS IS NOT BENEFICIAL FOR
MANKIND
Based on http://en.wikipedia.org/wiki/Petroleum, petroleum is
a naturally occurring flammable liquid consisting of a complex mixture of hydrocarbons of
various molecular weights and other liquid organic compounds,
that are found in geologic formations beneath the Earth's surface. The name
Petroleum covers the both naturally occurring unprocessed crude oils and
petroleum products that are made up of refined crude oil. A fossil fuel, it
is formed when large quantities of dead organisms, usually zooplankton and algae, are buried
underneath sedimentary rock and undergo intense heat and pressure.
The
increase in fuel prices happen because of the increasing of petroleum costs in
the world. Indonesia still relies on imported fuel as a result has a direct
impact to the government in pressing swelling subsidies fuel prices. Beside
that, based on http://ekonomi.inilah.com/read/detail/1831676/inilah-dampak-kenaikan-harga-minyak-dunia/#.UTSFVh1K-PY, some
of the factors assessed to support the increase in petroleum prices today such
as, weather, political tensions in the Strait of Hormuz Iran. This will
potentially depress economic growth. Because of what we have explained above,
we disagree that the rise of petroleum costs is benefical.
Based on http://www.unisosdem.org/article_detail.php?aid=8874&coid=2&caid=30&gid=3 the
last OPEC meeting in Vienna earlier this month, it was decided to hold the boom
in world oil prices by agreeing to increase the market capacity of 500,000
barrels per day.
Petroleum
price increases pose a problem because of increased government subsidies for
the production and rising costs for businesses, because fuel oil for the
industry is no longer subsidized by the government.
From
the economic point of view, the price of oil in the country should follow the
development of oil prices due to the importance of price in determining the
direction of the economy. However, from a business and social considerations of
domestic politics, rising oil prices have major implications in suppressing the
activities of the business and can lead to serious social and political
problems.
Before
the crisis, when Indonesia's oil production in the optimal level of around 1.2
million barrels per day. But in times of crisis, when oil production is no
longer optimal, less than 1 million barrels per day and fuel consumption
increased sharply, rising world oil prices more harm than good.
Negative
effects for the economy can be seen from the government's policy to increase
fuel prices about 126% in October 2005. The impact of rising oil prices will be
felt by businesses in the real sector. The industrialized world will be hit by
the increase. This burden will be transferred to consumers in the form of
higher prices. In the end inflation will rise.
Inflation
at the time and led to a sharp increase purchasing power declined sharply and
has not recovered to this day. The increase in fuel prices also increase
production costs are so large that the business world has not really resolved.
Therefore, the trend of the economy weakened, as indicated by the decline in
growth.
Meanwhile,
the burden is already high so that it can create lethargy due to production
that are not absorbed by the market and bad credit. Unemployment also increased
as well as poverty. Rising oil prices could hit growth in developed countries
and the tail of our exports will be hit. Target growth may fail to materialize
We
disagree about the motion today that the rise of petroleum costs is beneficial
for mankind because when government continuously subsidizing fuel price rise
and domestic consumption is increasing, exactly this matter will be affect
country's economy and destabilize automatically balance the budget expenditures
of the state budget list.
According
to http://www.wealthindonesia.com/wealth-growth-and-accumulation/pengaruh-harga-kenaikan-minyak.html rise
in oil prices will impact further on rising gasoline prices, the price of goods
and services. Therefore we don’t agree about the rise of petroleum costs is
beneficial for mankind, because this situation is not good for consumers
because they are must bear final impact of the price increases, especially for
those who are not rich. Charges of their live will be heavier if compared with
the time before the rise of petroleum costs.
Typically
the rise in petroleum costs followed by an increase in the price of the other
needs. This is not comparable to the someone’s income to fulfill their needs.
For example, fishermen who used to go to sea he uses diesel fuel for his boat.
The results he got from going to sea is uncertain. If fuel prices go up, then
he’ll just get little chance to go to sea for fishing. Then it affects family
economy, the needs of family life can not be fulfilled well.
In our
opinion, rising fuel prices increase the number of poor families, in other
words poverty situation is getting worse. Increasing poverty causes criminality
rises and increasing concerns about comfort in life. Based on that we do not
agree on a benefit if petroleum costs is increasing.
For
the conclusion, we don’t think that there’s many benefits for mankind if
petroleum costs is increasing. But we will get many adverse effects like what
we have mentioned above. We think that government shouldn’t raise the petroleum
costs, because the raise of petroleum costs isn’t the last option to be
applied. For the other choice government could provide tax breaks and also set
a minimum salary increase or also subsidizing energy industry as
well as by running what is mandated by the Act of 1945 regarding natural
resources, especially petroleum.
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