DOE assures ample oil supply, continues to monitor gas stations in Visayas

MINERVA BC NEWMAN

CEBU CITY – The Department of Energy (DOE)-Visayas Field Office continuously monitors and inspects liquid fuel retail outlets in the Cities of Talisay, Cebu and Mandaue and in most areas in the Visayas as gas prices are projected to increase due to the ongoing conflict between Russia and Ukraine.

In a hybrid emergency meeting on March 5 with secretary Alfonso Cusi and the downstream oil industry players, they assured the public that they do not foresee any supply issue despite the war in Ukraine. They also said that potential hoarding is highly improbable due to the elasticity of fuel demand and pre-programmed product deliveries. 

They however asked assistance from the government to increase public awareness and understanding on the reasons behind the series of recent price hikes.

Petroleum industry players said that big time oil hike for gasoline, diesel and kerosene is projected to be implemented on March 8: P3.60-3.80/per liter for gas; P5.30-5.50/liter for diesel and 4.00-4.10/liter for kerosene.

According to the DOE-Oil Industry Management Bureau, inventory data as of 28 February 2022 indicated sufficient supply levels of diesel, good for 44.5 days’ worth; gasoline for 85.4 days; kerosene for 80.2 days; LPG for 27.7 days; jet fuel for 69.9 days, and fuel oil for 44.4 days.

Cusi, in his opening remarks said the meeting must find ways to exhaust all available options to make things easier for the consuming public, to discuss strategies and to listen to the concerns and suggestions of the industry players and how DOE could help during these times of crises.

DOE USEC Gerardo Erquiza, Jr., in a virtual press briefing on March 4 bared the agency’s short- and long-term measures to address the oil concerns.  He said that for the short-term strategy, there is a constant coordination with oil companies for promotional programs that extend fuel discounts to the public transport sector.

The Land Transportation Franchising and Regulatory Board (LTFRB) shall implement the P2.5B “Pantawid Pasada Program” in the 2022 budget and the Department of Agriculture (DA) to also implement the P500M fuel discount program for farmers and the fisherfolks; and DOE to strictly monitors regularly the industry to ensure petroleum products’ supply sufficiency, quality maintenance as well as consumer welfare protection.

For its long-term program, DOE will continue to push to Congress the proposed amendment of the Oil Deregulation Law in terms of 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.

The suspension of the excise tax on fuel, establishing the petroleum reserves infrastructure, institutionalize the minimum inventory requirements (MIR) and the strong campaign on energy efficiency and conservation must also be addressed by Congress the soonest.

According to Erquiza that the DOE’s recommendations for the amendments to the Oil Deregulation Act had already been given to Congress and these are crucial to the long-term solutions to oil price hikes and other issues in the industry.

The Russia-Ukraine situation, according to Secretary Cusi, further underscored 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 stated. (Photos: DOE FB/Google Images)