THE Department of Energy (DOE) has assured that the government will implement proactive and targeted measures to mitigate impact of surging global oil prices amid escalating tensions between Israel and Iran.
On Tuesday, June 17, the DOE said Energy Undersecretary and officer-in-charge Sharon Garin and Undersecretary Alessandro Sales conducted inspections of oil depots in Manila to ensure that oil firms have the required inventory.
Oil companies are currently mandated to maintain at least a 30-day inventory of crude oil and a 5-day inventory of finished petroleum products.
“As we face continued volatility in the global oil market, the Department of Energy is taking firm and proactive steps to protect the welfare of our people. Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy,” Garin said.
She added: “Through close coordination with the oil industry and strict monitoring of inventory levels, we are working to maintain energy security while preparing targeted interventions to support the most affected sectors.”
The DOE is also asking oil firms to implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices to cushion the impact on local consumers.
It assured, however, that the government is prepared to roll out fuel subsidies to sectors directly impacted by fuel price increases, specifically transport and agriculture to prevent the further increase in the cost of basic goods and services.
Under existing government policy, fuel assistance for public transport drivers and farmers is automatically activated when the price of Dubai crude breaches USD80 per barrel.
As of June 16, the price of Dubai crude was USD73 per barrel.
The DOE said under this year’s General Appropriations Act, P2.5 billion has been allotted for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms nationwide.
The Department of Agriculture also has an allocation of P585 million which can be used to support farmers and fisherfolk in the agricultural sector who may be adversely affected by rising fuel prices.
The DOE said it will continue to monitor global energy market data, accelerate energy efficiency initiatives, and promote the electrification and hybridization of the public transport sector to reduce dependence on imported oil and enhance long-term energy resilience. (PNA)
