As the country works to augment its energy supply.
On Friday, April 10, Department of Energy (DOE) Secretary Sharon Garin said that President Ferdinand Marcos Jr. has ordered the department and its attached agency the Philippine National Oil Company (PNOC) to procure oil stock.
In line with that, it has bought 318 million liters or 2 million barrels of crude oil from other countries to augment the Philippines’ energy supply, with 165 million liters of those expected to arrive soon from Malaysia, Singapore, India, and Oman.
Garin also noted, “Pero hindi nangyari ‘to, kahit wala iyong (UPLIFT) committee pa, ginawa na ‘to ng Presidente at inutos na sa Department of Energy, through the Philippine National Oil Company (PNOC), bumibili na iyong gobyerno ng sariling supply para ma-augment/madagdagan ang supply ng ating oil companies.”
Under Executive Order No. 110, the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) has been adopted as the government’s coordinated response framework to ensure a stable energy supply, uninterrupted essential services, continued economic activity, and support for vulnerable sectors.
Meanwhile, the DOE chief said the Philippine government has also been communicating with other foreign countries to acquire additional alternative sources of crude oil, instead of relying solely on the Middle East or the Strait of Hormuz.
Furthermore, the Philippine oil companies are also exploring other sources, and the country is able to maintain stocks good for 50 days, which is the usual oil reserve, and emphasized that it does not mean it will be depleted in 50 days, but will be replenished as soon as other sources arrive in the country.
Garin also said that the government has built a system to ensure that the stocks coming from other countries will arrive safely and on time, as Philippine government officials communicate with the foreign ambassadors regarding this.
“So, this has been accomplished already, may system na kami with the oil companies – ‘pag may problema sila, sinusumbong namin sa ating mga taga-Department of Foreign Affairs at sila ang kumakausap sa mga ambassadors so they can help to make sure na iyong mga orders ng oil companies at PNOC ay dumarating. Ito po iyong whole-of-government approach,” she stated.
LPG
Meanwhile, the DOE, together with the rrst of the government, and the private sector are working together to ensure the sufficient liquefied petroleum gas (LPG) supply.
Garin noted that the country has an LPG inventory the could last a month, but admitted there are price increases.
“Pero tumaas po iyong presyo, naging mahal talaga siya. I think ang 1,100 naging 1,500 yata. Sobrang laki ng increase ng LPG, but that will stay for one month, once a month lang po iyong change ng presyo ng LPG.”
She also said that as local suppliers encountered problems once the Middle East conflict began, companies were able to look for alternative sources such as China and Hong Kong.
“So naghanap sila hanggang Australia, US at ngayon po nakakuha na sila, may supply na sila, pero hindi pa ganoon kakomportable iyong number. Even though 15 days lang dapat iyan, pero ngayon po, they are at 32 days,” Garin shared.
Following talks with the government, Garin said the PNOC and private companies have agreed to collaborate to procure one shipload of LPG to boost local supply, with both parties supposed to finish the contract with the new suppliers.
“Hindi ko lang alam kung anong country ang na-contact for the PNOC contract, pero iyon iyong gagawin namin in DOE, we will buy together with our companies for LPG,” she disclosed.
PRICES
The Energy department also assured the public that strict monitoring of gas stations and oil firms is underway to prevent profiteering and hoarding amid oil supply disruptions stemming from tensions in the Middle East.
“Bantay po ang DOE sa mga gas stations natin saka oil companies, making sure na wala silang hoarding saka profiteering,” said Garin, who also noted that there are now multiple directives, including EO 110, in place to ensure compliance among stakeholders and protect consumers.
Garin also reported that with in partnership with the Philippine National Police, cases of profiteering and hoarding have declined, and led to a “more stable supply” in gas stations.
The DOE official added that oil companies are also submitting weekly reports to the agency detailing their price adjustments and the reasons behind them.
“And we have in fact coordinated with the Philippine Competition Commission (PCC) na para to check the behavior of our oil companies kung mayroon bang cartelization o mayroong paglabag ng ating mga rules on profiteering,” told the energy chief. “I’m not saying that there are parties that are guilty of these pero maganda na ‘yan na mayroon tayong bantay. Nandiyan ‘yung DOE. Nandiyan ‘yung PCC. Nandiyan po ‘yung ating mga enforcement agencies to make sure that this does not happen.”
In addition, Garin also appealed to the public to monitor prices, especially LPG, and report to the authorities any dealers that make daily price adjustments.
