TAGUIG CITY - Department of Energy (DOE) Secretary Alfonso G. Cusi today assured the public on the sufficiency of the country’s oil supply amid the Russia-Ukraine conflict, but cautioned against the inevitability of domestic price spikes, reflecting upward global market movements.
“We are not lacking in supply given that we source our crude oil requirements primarily from the Middle East, and finished products from Asia-Pacific. However, the impact of the Ukraine crisis on international oil markets does have a direct effect on our prices. This is why we continue to appeal to everyone to observe energy efficiency and conservation measures during this critical period” Secretary Cusi stated at the virtual Kapihan sa Manila Bay Forum with Ms. Marichu Villanueva.
The Russia-Ukraine situation, according to Secretary Cusi, further underscores the importance of attaining energy security and independence for a country like the Philippines.
“Our country, as an importer of petroleum products, is again at the mercy of global price movements. We must work towards decreasing our dependence on others for our energy needs,” he stressed.
MEASURES TAKEN TO ADDRESS OIL CONCERNS
The Energy chief outlined the various measures being pursued by the DOE to address the matter, which include, among others:
A. Short-Term
• Constant coordination with oil companies for promotional programs that extend fuel discounts to the public transport sector
• The implementation of the Land Transportation Franchising and Regulatory Board of the PhP 2.5 billion _“Pantawid Pasada Program”_ in the 2022 budget
• The implementation of the Department of Agriculture of the PhP 500 million fuel discount program for farmers and fisherfolk
• Strict monitoring activities of the DOE to ensure petroleum products’ supply sufficiency, quality maintenance, as well as consumer welfare protection.
B. Long-term
• The proposed amendment of the Oil Deregulation Law (price unbundling, inclusion of Minimum Inventory
Requirements, provision of intervention powers to the government during periods of price spikes and prolonged increases in the prices of oil products)
• The suspension of the excise tax on fuel
• Establishing the necessary Strategic Petroleum Reserve infrastructure
• Ensuring Minimum Inventory Requirements
• Strong campaign energy efficiency and conservation
“The recent directive of President Duterte has been very clear - facilitate the smooth transition of programs to the new administration. This is what the DOE has been doing. All of these developments have been put in place to pave the way to a better energy future which the new Secretary of Energy could build upon,” Secretary Cusi concluded.
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