Developing countries like the Philippines have been hit hard by surging oil prices since the 70's and have hardly recovered from the successive oil price shocks since then. The most recent steep rise of crude oil prices forebodes of another similar scenario comparable to the 70's and the 80's.The Business Monitor International in its report entitled 'Philippine Oil and Gas Report Q4 2010' predicted a 2010 OPEC basket oil price level of US$83.00/bbl. It currently stands at US$73.00/bbl! If nothing is done to cushion the effect of the expected future oil price surges, this will definitely bring down the developing countries to their knees!
So, what can done to avert such risks? These countries are so dependent on imported oil to keep their economies going. Through various ways and means, the governments of these developing countries tried to cushion the effects of the crude oil price surges in the past by legislating measures and/or imposing new taxes - in the end, ultimately passing the buck to their citizens. But, how much of these price increases can they take before they rise up in revolt!
