Cheaper diesel imports seen to arrive in August or September

Photo shows Russia’s Prirazlomnoye oil field. The Malacañang said the government is exploring the possibility of sourcing fuel requirements from countries outside of the Organization of Petroleum Exporting Countries (OPEC) – such as Russia – in an effort to ease the impact rising petroleum prices. EJATLAS

MANILA – State-run Philippine National Oil Company-Exploration Corp. (PNOC-EC) said it is targeting to bring in lower-priced diesel from overseas sometime in August or September if it can secure suppliers, storage facilities, and distributors to its intended market: public utility vehicles.

“If everything goes well, we’re looking at around August or first week of September,” PNOC-EC president and CEO Pedro Aquino Jr. said.

“Before we place the order, assuming we have already selected the best offer, we still need some time para ma-fix namin ‘yung storage facility… that means naka-secure na kami ng agreement with the storage facility owner. Corollary to that, na-firm up na namin ‘yung distribution side because dapat synchronized lahat iyan from the supplier to the storage to the receiving terminal itong mga dealers dapat naka-sync lahat iyan,” Aquino said.

The Department of Energy (DOE) earlier tasked PNOC-EC, through Board Resolution No.5-5 Series of 2018, to engage in the retail trade – selling petroleum products sourced from Russia and other non-Organization of the Petroleum Exporting Countries (OPEC) suppliers to independent petroleum dealers and to individual public consumers.

To bring down supply costs, the government will haggle the best possible price and enter agreements with foreign counterparts.

Aquino said that though the government initially targeted to import 240 million liters of diesel from Russia, the PNOC-EC is open to other options.

He also said that the needed quantity to be shipped is yet to be determined as the government still needs to secure storage facilities.

“In Luzon, we will use the Subic coastal facility. For Visayas-Mindanao, meron nang na-identify but we still need to check if we can secure the depot,” he said.

‘Yung pricing kasi is what we’ll do is we will solicit them to give us their best offer. We will not fix the price. We will solicit offers for one week.”

The PNOC-EC has earmarked a budget of P2 billion for the diesel importation.

The PNOC-EC chief said importing cheaper diesel is intended for jeepney and bus drivers.

Pang-suporta lang talaga ito… this is another form of subsidy,” Aquino said.

He added that the government-initiated diesel importation will stop once crude oil prices reached below $50 per barrel.

‘Pag yung presyo ng crude oil in the world market bumaba na to that level na we don’t need to make this support, titigil kami,” Aquino said. (GMA News)

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