DOE spells out measures to cushion impact of high petroleum prices

THE Department of Energy (DOE) has been carrying out measures to mitigate the impact of the current crisis in Europe to ordinary Filipino consumers, Secretary Alfonso Cusi said on Wednesday.

In his report to President Rodrigo Roa Duterte during the latter’s Talk to the People, Cusi said among the measures include implementing the Pantawid Pasada program, encouraging industry players to give “diskuwento” programs, monitoring sufficient energy supply, preventing hoarding, and monitoring the selling or retailing of petroleum products.

Cusi also said the DOE is also advocating for the unbundling of oil prices, and pushing for legislation for the inclusion of minimum inventory requirements aimed at stabilizing the country’s oil inventory.

“Ito po ay hinihingi natin, mahigit na po nating tatlong taong ipinaglalaban ito at ito pa nga po ay ipinalalagay natin sa batas. Kailangan po nating i-revisit ang pricing formula,” he told the President on the measure.

“Dahil sa pagtaas po ng petrolyo kailangan nating bisitahin ito for transparency at makita po natin lahat, including the industry take. Gusto po rin po natin ipasabatas ang inclusion ng minimum inventory requirements para po sa ganoon hindi po tayo mabubulaga na kulang ang ating imbentaryo.”

The DOE, he said, is also asking for intervention power to study the flexibility in fuel blending under Biofuel Law that regulates mixing ethanol or alcohol to gasoline, and coco oil to fuel.

Blending affects prices because coco oil is more expensive than diesel and this is also true with ethanol, according to Cusi. The country imports large volume of ethanol but higher domestic price of the product affects prices and the government has to strike the right balance to protect the consumers.

Another measure is putting up strategic petroleum reserve through the Philippine National Oil Co. (PNOC), which will be funded through borrowings.

“And tuloy-tuloy po ‘yung kampanya natin dahil sa ganito po naman talaga ang kailangan natin is energy efficiency at conservation. So ‘yung programang ito po tuloy-tuloy nating itinutulak, pinapaalalahanan ang ating publiko nang maayos na paggamit ng petrolyo,” the energy chief said.

Cusi assured President Duterte that the country has sufficient energy supply with industry players promising continuous supply.

The good news is that petroleum prices may go down after the price dropped to $104.7 per barrel during two tradings this week to compared to last week’s average of $122.61 for every barrel, Cusi said.

“Kung magtutuloy-tuloy po itong sa ganitong trend at umabot po ng $104, $105, $100 per barrel, makaka-experience po tayo ng pagbaba ng presyo next week,” he said.

“Sa gasolina, puwede po tayong bumaba ng mga P5 mahigit at sa diesel po, puwede naman pong magbaba ng P12 pataas.”

Regarding electricity, Cusi told the President that power prices have increased due to high coal prices.

But he made an assurance that the country has sufficient supply of the commodity, as the country maintains 30-day coal inventory.