Nelson Morales

Oil shock won’t lead to power outages, Energy officials tell Senate

A restaurant sits empty after a power outage struck Iloilo City, as seen in this photo taken on January 3, 2024. Arnold Almacen of the Iloilo City Mayor's Office.

Article (news)

RG Cruz

ABS-CBN News

MANILA – The Department of Energy assured a Senate panel that the worsening global oil supply situation will not lead to power outages, even as pump prices in the country continued to soar.As diesel prices in Metro Manila hit P134 pesos per liter, Energy Undersecretary Felix William Fuentebella told senators that the power grid remained stable.&quot;Hindi po dahil sa oil crisis kung magkakaroon ng brownout sa inyo. Baka po, natamaan yung wire pero hindi po dahil sa oil crisis,&quot; Fuentebella said, promising &quot;transparency&quot; should supply issues arise.Energy Undersecretary Alessandro Sales said that the power sector may be affected, but to a limited degree.While the Philippines relies heavily on imported coal, Sales noted that shipping costs from Indonesia have driven a &quot;marginal&quot; 10 to 20 percent increase in fuel expenses. To bolster reserves, the state-owned PNOC-EC has bypassed traditional triggers to tap new suppliers, with a dedicated diesel cargo expected in Subic this week.The country has 38 days of inventory for gasoline and 42 days for diesel, Sales added, noting that the government is loosening standards to allow &quot;Euro 2&quot; diesel for older jeepneys and generators to ease the burden.However, lawmakers warned that current subsidies are being swallowed by the market. Senator Risa Hontiveros pointed out that the recent excise tax relief is insufficient against price spikes of up to 18 pesos per liter.Senator Loren Legarda pushed for a 12 percent Value Added Tax (VAT) suspension, arguing it would provide a 15.6-peso reduction per liter. DOE officials, however, urged caution, suggesting a &quot;zero-rating&quot; instead to protect the supply chain.Despite hopes for a diplomatic resolution to global hostilities, Senator Bam Aquino warned that &quot;the drop in prices will not happen instantaneously” and may take several months.

The Department of Energy assured a Senate panel that the worsening global oil supply situation will not lead to power outages.

The Department of Energy assured a Senate panel that the worsening global oil supply situation will not lead to power outages.