Biz groups push for new fuel sources, subsidies
Five of the country’s leading business groups said they support government efforts to secure alternative supplies of fuel, among other measures they had recommended, amid the persistent rise in fuel costs due to the Iran war now past its first month.
In a joint statement on Monday, the Philippine Chamber of Commerce and Industry, Management Association of the Philippines, Federation of Philippine Industries, Federation of Filipino-Chinese Chambers of Commerce and Industry, and Makati Business Club all acknowledged that volatile fuel prices have become “serious threats” to economic stability and consumer welfare.
They said they discussed “collaborative” measures intended to “safeguard Filipino consumers and the Philippine economy” during a March 27 meeting called by Finance Secretary Frederick Go.
One such recommendation is the pursuit of government-to-government procurement deals with nontraditional partners such as Russia, India and neighboring Indonesia.
Last week, the Philippines received its first shipment in five years of Russian crude amounting to 2.48 million barrels, as confirmed by Petron Corp., the country’s sole refiner.
Meanwhile, the Bureau of Internal Revenue (BIR) also on Monday issued a special permit for the emergency importation of petroleum products by PNOC-Exploration Corp. (PNOC-EC).
Subsidies, flexible work
The business groups also called for targeted subsidies for vulnerable sectors, particularly public transport operators who have sought fare increases to cushion the impact of rising fuel costs.
Earlier, fare hikes for several public utility vehicles had been set on March 19 after they had secured the approval of the Land Transportation Franchising and Regulatory Board. But President Marcos deferred the fare increases, saying this was “not right” during a global crisis.
The business leaders also said maintaining stable interest rates and managing nonfuel costs across supply chains would also be critical, to limit price pressures on basic goods.
They committed to cutting energy consumption and accelerating investments in renewable energy.
They agreed to adopting flexible work arrangements to reduce fuel demand, implementing “aggressive energy-saving measures” across corporate and industrial facilities, and promoting energy conservation practices among employees.
Mall operators such as SM Supermalls, Robinsons Malls and Ayala Malls announced last week they would shorten operating hours in response to the government’s declaration of a national energy emergency.
The businessmen also pledged to “invest in and accelerate the adoption of alternative energy solutions, particularly solar power” to reduce reliance on imported fuel and strengthen long-term energy security.
Prompt importation
The BIR on Monday said the special permit it issued through its Large Taxpayers Service (LTS) unit is for PNOC-EC to ensure the quick entry of fuel barrels.
PNOC-EC, a subsidiary of state company Philippine National Oil Co., and the Department of Energy (DOE) had been working to procure 2 million barrels of diesel worth P20 billion in a bid to extend the country’s fuel supply by 10 days.
Earlier on Sunday, Executive Secretary Ralph Recto said the first batch of over 1 million barrels of diesel is expected to arrive this week. Suppliers were not disclosed, but the government said it was exploring all potential partners outside the region.
In a statement, the revenue agency said: “PNOC-EC had earlier informed the BIR that it would immediately undertake the importation of petroleum products as an emergency measure. In response, the Bureau, through the LTS, worked with PNOC-EC on the documentary and procedural requirements for issuing the special permit and processing the import transaction.”
The statement also quoted BIR Commissioner Charlie Mendoza as saying his agency’s cooperation was in compliance with Executive Order No. 110, President Marcos’ March 24 directive declaring a state of national energy emergency.
Russian crude
Petron, meanwhile, said it is eyeing additional crude shipments from Russia if the Iran war drags on.
In a disclosure to the local bourse, the former government corporation now led by businessman Ramon Ang said, “If the current crisis persists and alternative crude sources remain unavailable or insufficient, the corporation may again be compelled to consider purchases of Russian crude oil.”
This is necessary to bolster local supply and cushion “the inimical consequences resulting from the absence of a stable and reliable source of crude,” said the country’s sole fuel refiner. —WITH A REPORT FROM LISBET K. ESMAEL
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