Gas stations warned: No advance price hikes
The Department of Energy (DOE) has called in law enforcers to heighten its monitoring of fuel prices, as some gas stations have already raised prices by about P8 per liter ahead of schedule.
With the assistance of the Philippine National Police, the DOE on Saturday said that it had begun its inspection of retail stations across the country.
In the Davao del Norte provincial capital of Tagum City, one gas station had already raised its prices for diesel by P8.35 per liter—from P64.85 to P73.20.
The station was directed to restore prices to correct levels.
“The DOE remains committed to protecting consumers, ensuring fair market practices, and maintaining public confidence in the country’s energy supply system,” it added.
It also urged the public to report any suspected hoarding, refusal to sell, price manipulation and other irregularities.
Fuel retailers in the Philippines usually announce their price adjustments on a Monday, ahead of implementation the next day.
Early complaints
While the DOE cited one station in Mindanao, people in other places aired their frustration online as local retailers have already increased the prices of diesel and gasoline.
In Laguna, a motorcycle rider told the Inquirer that a petrol outlet in Sta. Rosa City had hiked its prices by about P10 per liter, frustrating his plan to load up before fuel prices reportedly rise to P80 per liter next week.
The rider, who requested anonymity, said he would just use his bicycle, given the steep fuel costs.
“The DOE continues to work closely with industry stakeholders and law enforcement authorities to ensure that petroleum products are sold fairly and in accordance with existing regulations,” the agency said.
Under Department Circular No. DC2019-05-0008, the DOE requires oil companies to notify the agency not later than 3 p.m. on the day before the implementation of any price adjustment—whether an increase, a decrease or no movement. It directs that the price adjustment be implemented every Tuesday and to hold it for the next seven days.
Upward trend
Violators may face suspension or cancellation of their company’s permit to engage in the downstream oil industry, their certificates of compliance for their establishments, or their standard compliance certificates, which indicate that they have met the regulatory and documentary requirements to engage in the industry.
While the estimates of price hikes are already massive compared to recent increases, which only ranged from 10 centavos to less than P2 a liter, an industry source told the Inquirer that oil companies could impose bigger adjustments.
The prices may still rise due to the current situation in the Middle East that is pushing premium and freight costs higher than the usual levels, the source said.
Local oil prices have been trending upward for the past 10 weeks, but it is only now that the market is seeing this potential level of price adjustments this year.
The war in the Middle East, which was triggered by attacks on Iran by the United States and Israel, is putting global oil supply at risk.
The rising tension in the region also prompted China to halt fresh fuel export contracts. China accounts for 30 percent of the diesel imports of the Philippines.
‘No reason for panic buying’
Although the Philippine market still has two months’ worth of supply, the government is planning to beef up local stocks by purchasing 1 million barrels of diesel from other allies, including South Korea, Japan, Singapore, Malaysia and Indonesia.
Energy Secretary Sharon Garin advised the public against hoarding or panic buying, which was seen in Thailand.
Poorly stored fuel, especially for long periods, could ignite fires or trigger explosions. This also risks contamination or spoilage.
The DOE said in a statement that there was “no reason for panic buying.”
“The country has adequate fuel supply, and government agencies are actively monitoring the situation to ensure that the public is protected,” it said
Garin agrees that there is a need to review Republic Act No. 8479, or the 1998 Downstream Oil Industry Deregulation Act. Lawmakers should look into amending or revising penalties, disclosures and transparency, she said.
In 2022, Malacañang suggested an amendment to give the government “intervention powers” during a prolonged spike in fuel prices.
Subsidies in 1 to 2 weeks
The oil deregulation law removed government control over pricing to allow oil companies to become more competitive by letting market forces determine pump prices of petroleum products.
As the Middle East war rages, the Department of Agriculture (DA) is taking steps to support farmers and fisherfolk.
Agriculture Assistant Secretary Arnel de Mesa said on Saturday that the DA was ready to start the release of up to P150 million worth of fuel subsidies to farmers and fishers in “one to two weeks” to cushion the impact of the war.
De Mesa, who is also the DA spokesperson, told dzRH radio in an interview that the agency was coordinating with the Development Bank of the Philippines and accredited fintech providers for the release of an initial P100 million worth of subsidies. Later, the DA will request for the remaining P50 million from the Department of Budget and Management, he said.
Around 15,000 farmers and 28,000 fishers, who are eligible to receive the “one-time” fuel assistance, will each get P5,000 and P3,000, respectively. Priority will be given to those who did not receive any financial assistance in previous years, De Mesa said.
Eligible farmers and fishers are supposed to be registered in the Registry System for Basic Sectors in Agriculture and use agricultural machines or equipment that are not harmful to the environment. They will receive a fuel subsidy card to purchase fuel from accredited gas stations.
In addition to the fuel subsidy, qualified rice farmers will each receive P5,000 in financial assistance from the P30-billion Rice Competitiveness Enhancement Fund. This fund was collected from tariffs on imported rice and intended for improving farmer income and competitiveness. —WITH REPORTS FROM JORDEENE B. LAGARE AND DIANNE SAMPANG
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