Even so, the price of USD150 per barrel is too much compare to now USD100 per barrel, i can understand if they mark the price at USD125, but not USD150.
There is some confusion on my part. We are talking about $155 SGD. I tot is USD$155.
was thinking now Sp had gone private.
let said if the present gov is the opposition running the country, are they in any position to stop Sp?
or it will be the same as now?
Since July 07, the price of electricity has gone up from 18.88 cents/Kwh to 30.45cents/Kwh, which is 61% increment, every 2~3 months, it seem to increased by 4~21%.
Sony Alpha 700 hobbyist
Let's say you hedge at $55/barrel three months ago.
Today you buy oil at the spot rate $100/barrel. Do I charge you $55 or $100? In this case, SP Services has to "eat" the $45 bucks price difference.
From a consumer point of view, you are unlikely to notice when SP Services "takes" the hit.
Last edited by StrifeYun; 2nd October 2008 at 11:41 AM.
Canon EOS "Luxury"
Theory wise, 3 months forward price is likely to be what is the spot price 3 months from now that ppl expected to pay.
I.e. if ppl expect spot prices to fall in 3months time, 3 months forward likely to be around that price. I just explaining things in a simple way. Academically, there is a million and one ways to model such stuffs.
If you don't mean paying $X for the product say 3 months from now......you will hedge at $X to be settled in 3 months from now.
3 months from now, at least you are certain that you be paying only $X and not $X+Y. Of coz it can work against you too.......if say the product price falls below $X to $Z. This means that you will be overpaying $X-$Z.
The key point is to smooth out price volatility and have price certainty.
ultimately..more middle income group will be moving down to the lower income group..those who couldn't take it will choose to retire..
This is an electronic post which requires no signature.
thats the problem with the 80-20, top 20% income group suppose to help the lower income group. no help for the middle income cause we are expected to be able to take care of ourselves, despite the ever increasing cost (like the PUB bill up 60%+ from last year etc) but salary increament is min. so we stay competitive (company is supporting govt's call).
than again, the govt never force anyone to stay here, if dont like it here, just leave lor. (something to this extend, that the feeling i am getting).
Last edited by denniskee; 2nd October 2008 at 12:44 PM.
photography makes one sees things from all angles.
certainty in price? uncalled for inflation is certain, thatz for sure.
this Sg Inc. is going too far. privatising has not benefitted residents (locals/ PRs alike). worse hit will be home owners with maids....
Main aim of privatizing is to gain efficiency. Electricity consumption does not have positive externalities unlike say education so why subsidise?
If it is cheap ppl will just use more than the optimal.
As an economist, if i have my way i would have a conservation tax on electricity. The negative externalities of electricity is unlikely to be reflected by it price yet.
lower prices leading to higher consumption does not make it right for energy providers to charge more. so far the oni efficiency gained is collecting bills.
if gaining efficiency is the goal of privatising, i know wad is best to privatise next! hehee...
Agreed that it does not make it right for energy providers to charge more. Therefore as I mentioned, that is to be taxed by the government to prevent higher consumption.
It is the same for education. Consumption of education is good. Lower prices lead to higher consumption. Therefore govt and not the education providers should subsidies.
SP Services is not charging more. They "buy" and pass through. Simple stuff.
Last edited by foreverlovex; 2nd October 2008 at 02:22 PM.