MANILA — Oil companies assured the government of sufficient fuel supply despite volatile global oil prices, as the Marcos administration intensified measures to shield consumers from potential pump price spikes and supply disruptions.
The assurance was given during a meeting between Palace officials and oil industry executives at Malacañang Palace on Thursday, where both sides discussed steps to stabilize supply and prevent unreasonable increases in pump prices.
Executive Secretary Ralph Recto, who led the government delegation together with Energy Secretary Sharon Garin, described the discussions as “productive.”
“The meeting focused on supply and prices, on how to keep both stable, amidst the volatility we are seeing,” Recto said in a statement.
The talks followed President Ferdinand “Bongbong” Marcos Jr.’s directive to address the possible impact of rising global oil prices on the local market.
Recto noted that the President has already certified as urgent a proposed bill that would allow the temporary suspension or reduction of excise taxes on petroleum products during economic emergencies.
“The President wants the bill on his desk immediately so he can sign it,” Recto said.
Aside from the proposed tax relief, the government is also considering other measures to mitigate the effects of higher fuel costs, including an energy conservation campaign and lifeline subsidies for transport groups.
Officials also discussed possible supply chain disruptions caused by geopolitical tensions affecting global oil markets.
“Thankfully the companies gave the assurance that whatever operational challenges in bringing the products here are manageable,” Recto said.
He added that the government is exploring alternative fuel supply sources should global conflicts worsen and disrupt the oil market.
“This is the kind of oil diplomacy that oil executives and the government will have to jointly undertake,” Recto said. “The major issue that must be addressed proactively in a crisis that is very, very dynamic is the supply chain disruptions.”
Energy Secretary Garin, meanwhile, reminded oil firms that fuel price adjustments must reflect actual market movements.
She warned that premature, excessive or unreasonable increases in pump prices would not be tolerated./PN
