Today, crude oil price is valued at $53. 30 per barrel, but is still in contention with other sources of energy such as biofuels. Biofuels today are getting cheaper and cheaper due to the new technologies such as the development of several other feedstocks such as jatropha and corn stover. However, in Malaysia, due to the dropping down of oil prices during the past 6 months, their proposed biofuel which is made from palm oil is suffering because presently, regular diesel prices are much cheaper than blended diesel. Prices are RM 2.
80 for blended diesel, compared to the RM 1. 70 price of regular diesel. Transportation Costs In the Philippines, transportation costs went down by a miniature amount, considering that the gas prices there have already gone down by almost 50%. Fare price for the most popular mode of transport – the jeepney is discussed in the following sentences. Transport groups in the Philippines are arguing that they are still in big deficits considering that during the peak of the oil price hike, fares are only P7. 50, only P1.
50 higher than when the diesel prices were about half of the value of the peak prices. Currently, transport costs are P7. 00 even when the price of diesel is down to P22. 60 from a high of about P54. Other modes of transport experienced increases but have already reverted back to their original prices after the costs of gasoline and liquefied petroleum gas (main fuel for most of the taxi cabs) have gone down. Cost of Food During the 2007 global food crisis, the world experienced inflation in the prices of basic goods such as corn.
This is due to the food versus fuel debate which was sparked by the eagerness of the entire world to embrace the use of biofuels. Today, the prices of corn and other basic food crops have been stabilized thanks to the development of other materials that can be used to produce the ethanol needed for biofuel blends. Some of these new materials include plants such as jatropha as well as marine algae. Presently, governments are starting to regulate the amount of land which can be used for the planting of crops that will be used for ethanol production.
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