The Department of Energy (DOE) on Tuesday assured that domestic fuel supply remains adequate amid the ongoing conflict in the Middle East.
In a press briefing, DOE Secretary Sharon Garin said that measures are now being undertaken with oil firms to ensure stable supply and compliance on the minimum 15-day supply reserve.
"We have enough supply. The DOE does not direct the oil companies to have one-year supply as this will be very expensive and additional supply requires more areas to store the fuel. Oil companies can easily increase their supply since it also takes a week to get their orders from the Middle East. But they have more than that. They don’t only have double the minimum requirement, they have three times the minimum requirement,” she said.
In a separate briefing, President Ferdinand Marcos, Jr. Marcos assured the public that the country has sufficient oil supply, with stockpiles ranging from 29 to 67.5 days.
He said diesel has 50.5 days of supply, fuel oil and gasoline, 51.5 days each; kerosene, 67.5 days; jet fuel, 58 days; and liquefied petroleum gas (LPG), 29 days.
Garin said that around 98 percent of crude oil domestic supply comes from the Middle East. The remaining two percent comes from Malaysia and Brunei Darussalam.
The supply from the Middle East is currently experiencing disruptions due to closure of the Strait of Hormuz.
The DOE said it is considering tapping, through the private oil companies, other areas for oil imports, such as Africa, Canada and other South American countries, she said.
Garin said DOE officials met with representatives of oil firms last Monday. “We are hoping for the best but we are preparing for the worst.”
On Tuesday, fuel firms raised the prices of gasoline by P1.90 per liter, diesel by P1.20 per liter, and kerosene by P1.50 per liter.
The DOE said they will compute the possible domestic price hikes starting Wednesday.
The agency added that the full amount will be determined on Saturday when this week’s trading is done.
“And each [oil] company will have to decide if the standard increase will be done in two or three implementation(s). But what we want is at least the reasonable adjustment will be done on a weekly basis,” the agency said.
Marcos on Tuesday said he may seek emergency powers to temporarily reduce excise tax on fuel and oil products, if Dubai crude exceeds USD80 per barrel.
It is a contingency plan to slash excise tax, which is largely dependent on the price of oil and the duration of the increase.
The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday disclosed it is considering provisional fare increases due to the hikes in fuel prices.
“We have definitely considered the granting of provisional increases… if the price of fuel increases, pump price, more than P60 per liter. Across the board if necessary. It’s basically fuel cost recovery. So, if the price of fuel goes down, then there will also be a proportional reduction in the amount of fares,” LTFRB Chairperson Vigor Mendoza II said.
The official added that LTFRB has yet to determine the effects of a provisional fare hike and when it would be implemented.
The agency has received requests for permanent fare increases of P2 for jeepneys and city buses; P0.50 per kilometer for provincial buses; and an increase of 30 to 40 percent for point-to-point services.