DOE says to ensure oil firms have enough inventory as tensions in Middle East continue

MANILA -- Government measures are in place to mitigate the impact of the ongoing conflict between Israel and Iran, particularly on global oil prices, Malacanang said Tuesday.

“Nakausap po natin si Ma’am Sharon Garin at sinabi nila’y minu-monitor nila closely ang Middle East situation at maaari pong magdulot ng issue kapag po talaga naisara itong Strait of Hormuz," Palace Press Officer Claire Castro said, quoting the Department of Energy.

"Pero sa kasalukuyan po, ang oil companies po ay required na magkaroon ng 30-day inventory of fuel,” she added.

The Tax Reform for Acceleration and Inclusion (TRAIN) Law allows the suspension of fuel excise tax increases when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) for three months preceding the scheduled increase reaches or exceeds US$80 per barrel. 

According to Castro, this will also trigger the provision of financial aid for public transport drivers and fisherfolk to offset increased fuel costs.

“At kapag po tumaas ang presyo ng crude oil ng mahigit sa 80 US dollar per barrel, ang ayuda for fuel for public transport and fisherfolk ay mati-trigger po at kakailanganin na rin po na maabisuhan ang DA and DOTr patungkol po sa ayudang ito,” she said.

“I-monitor pong mabuti kung anong sitwasyon para po makapagbigay ng agaran ding solusyon at kahit papaano po ayuda kung talaga pong sobrang tataas ang presyo ng krudo.”

Castro said the DOE is also willing to talk to oil companies to maintain inventory levels and spread out the oil price adjustments if necessary.

“Iyan po ay siyempre boluntaryo po at nasa magandang pakikipag-usap po iyan,” she said. 

Department of Energy Officer-in-Charge Sharon Garin said government is moving to ensure that oil companies maintain the mandated 30-day fuel inventory amid rising tension in the Middle East as Israel and Iran launch retaliatory attacks against each other:

Garin also said she will check on some oil depots in Manila and Navotas on Tuesday.

According to Garin, the government cannot do anything about fuel prices as oil supply remains imported and prices fluctuate based on the world market.

“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. 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 official said in a statement.

Earlier, the government said it will not ask oil firms to stagger hefty price increases.

Today, diesel and gasoline prices rose by P1.80/litere and kerosene by P1.50/liter.

SIQUIJOR SITUATION

Meanwhile, homestay accommodation owner Bambi Chan is ecstatic that power is back in the island province of Siquijor.

But Chan said the island still experienced 3 hours of brownout last night due to switching issues with the new power source.

Power was restored early morning and electricity has remained as ABS-CBN News was interviewing Chan.

The DOE said while the issues has been resolved by providing additional power source, Siquijor still needs a stable provider as it prepares to accommodate more tourists in the next months.

For now, Garin said Siquijor has 10MW of power supply but only needs 8MW.

Garin has already coordinated with National Electrification Administration and TRANSCO to check on transmission lines.

According to Garin, the province needs a stable power supplier in order to prevent a repeat of the massive blackouts since May.