DOE assures ample supply of oil, warns of price spike

THE Department of Energy (DOE) on Wednesday, March 2, 2022, assured the public of ample oil supply amid the ongoing conflict between Ukraine and Russia.But the agency cautioned against the spikes in domestic prices as a result of the upward global market movements.“We are not lacking in supply given that we source our crude oil requirements primarily from the Middle East, and finished products from Asia-Pacific. However, the impact of the Ukraine crisis on international oil markets does have a direct effect on our prices. This is why we continue to appeal to everyone to observe energy efficiency and conservation measures during this critical period,” said DOE Secretary Alfonso Cusi during the virtual Kapihan sa Manila Bay Forum.The Russia-Ukraine situation, according to Cusi, further underscores the importance of attaining energy security and independence for a country like the Philippines.“Our country, as an importer of petroleum products, is again at the mercy of global price movements. We must work towards decreasing our dependence on others for our energy needs,” he stressed.For the short term, Cusi said the DOE will be in constant coordination with oil companies for promotional programs that extend fuel discounts to the public transport sector.Targeted reliefRecently, the Development Budget Coordination Committee said the government is ready to provide “targeted relief assistance and support to address the impact of the oil price hike for affected sectors, especially public utility vehicle (PUV) drivers, farmers and fisherfolk.”The government is preparing P2.5 billion for the Department of Transportation’s Fuel Subsidy Program that will provide fuel vouchers to over 377,000 qualified PUV drivers operating jeepneys, UV express, taxis, tricycles and other full-time ride-hailing and delivery services nationwide.The Department of Agriculture, on the other hand, has a P500 million budget to provide aid through “fuel discounts to farmers and fisherfolk who either individually own and operate agricultural and fishery machinery or operate through a farmers organization or cooperative.”The DOE will also conduct strict monitoring activities to ensure petroleum products’ supply sufficiency, quality maintenance, as well as consumer welfare protection are observed.For the long term, the DOE called for the amendment of the Oil Deregulation Law (price unbundling, inclusion of Minimum Inventory Requirements, provision of intervention powers to the government during periods of price spikes and prolonged increases in the prices of oil products) as well as the suspension of the excise tax on fuel. (KOC with PR)