Garin: Gov’t doing its best to cushion impact of high oil prices

MANILA – The government is doing its best to help cushion the impact of higher oil prices on domestic fuel and electricity prices amidst the renewed military exchanges in the Middle East.

Data released by the Department of Energy (DOE) showed that starting Tuesday this week, gasoline prices will increase by PHP3.65 per liter, diesel by PHP10.68 per liter, and kerosene by PHP11.77 per liter.

in an online briefing Monday, DOE Secretary Sharon Garin said the Philippine government does not have any control over the price adjustments as they are driven by the impact of the ongoing war in the Middle East and that the domestic oil sector is a deregulated industry.

She said there is no one in the Philippines who can change the direction of oil prices, “but we can act on how it reaches our people” through various measures such as fuel subsidies to public utility drivers and operators.

The government also asked oil firms and distribution utilities to implement staggered price hikes to lessen the burden on consumers.

“This is, in fact, voluntary in their part,” she said, noting that normally companies heed the call.

“Let me assure the public on the point that matters most. Our fuel supply is sufficient. Inventories remain adequate. Filipinos can go about their normal routines and operations with confidence. We continue to buy petroleum, diesel, gas, LPG (liquefied petroleum gas), all of that,” she said.

Garin said domestic fuel supply remains above the 30-day mandate under the law.

DOE data show that as of July 17, gasoline supply is adequate for 43.77 days, diesel by 45.94 days, kerosene by 139.97 days, jet fuel by 82.31 days, fuel oil by 28.83 days, and LPG by 34.30 days.

“The supply is steady, but the problem is the prices. Global prices are extremely driven and we have been acting to ease the pressure on those who feel it the most,” Garin said. “We can ensure that there is no abuse. We can ensure that there is no overpricing.”

Seaoil, in an advisory Monday, said it will increase gasoline prices by PHP3.60 per liter effective 6 a.m. Tuesday.

Diesel prices will be hiked by PHP8.20 effective 6 a.m. Tuesday and PHP1.20 per liter each at 6 a.m. on Wednesday and Thursday.

Also, it will increase kerosene prices by PHP8.10 per liter at 6 a.m. on Tuesday, PHP2.30 per liter at the same time on Wednesday, and PHP1.20 per liter at the same time on Thursday.

Petron said it will hike gasoline prices by PHP3.60 per liter by 6 a.m. on Tuesday, along with diesel by PHP8.20 per liter, and kerosene PHP8.10 per liter.

At 6 a.m. on Thursday, it will increase diesel prices by PHP2.40 per liter and kerosene by PHP3.50 per liter.

Fuel subsidy

DOE Assistant Secretary Alessandro Sales, during the same briefing, said around PHP327 million has been released to around 87,582 beneficiaries of the fuel subsidy program being implemented by the Land Transportation Franchising and Regulatory Board and the Land Bank of the Philippines.

Under this program, qualified public utility vehicle drivers may avail of a PHP10 per liter fuel discount for a total of 150 liters weekly.

The program is being participated in by 2,913 fuel stations nationwide.

Electricity prices

Energy Undersecretary Rowena Cristina Guevarra said power rates will definitely increase due to the uptick in global oil prices.

“Depending on the price increase of fuel in the next few weeks, we might see an increase in the price of electricity. Similar to what happened in the past, we will be encouraging our distribution utilities to first use the cheaper fuel before using the more expensive fuel,” she said.

She called on power consumers to help conserve electricity “such that we don’t have to run the higher-priced power plants.” — Joann Villanueva (PNA)