Gov’t orders DOE to ensure sufficient oil supply
The Department of Energy (DOE) appealed to oil industry players on Tuesday to implement staggered fuel price adjustments to avoid unduly burdening the public as it also announced that it is preparing subsidies for sectors affected by rising global oil prices due to escalating tensions between Israel and Iran.
“As we face continued volatility in the global oil market, the Department of Energy (DOE) is taking firm and proactive steps to protect the welfare of our people,” the department’s officer in charge Sharon Garin said in a statement.
“Through close coordination with the oil industry and strict monitoring of inventory levels, we are working to maintain energy security while preparing targeted interventions to support the most affected sectors,” Garin added.
These include fuel subsidies to sectors directly affected by the fuel price hikes, including transport and agriculture, “to prevent a domino effect that could drive up the cost of basic goods and services.”
According to Garin, the DOE’s immediate priority is to ensure a stable and sufficient fuel supply and manage any local price adjustments “in a way that minimizes disruption to our economy.”
Malacañang also said in a press briefing that President Marcos has ordered government agencies to keep a close eye on developments in the Middle East and in the military strikes between Israel and Iran.
Israel launched air strikes against Iran on Friday in what it said was an attempt to prevent it from developing nuclear weapons. The attacks, however, have prompting Tehran to respond in kind.
Presidential Communications Office Undersecretary and Palace press officer Claire Castro told reporters that the government is ready to provide interventions if the situation affects the prices or supply of oil and fertilizers.
“The President’s directive is to closely monitor the situation so that we can immediately provide solutions and aid if the price of crude oil skyrockets,” Castro said.
30-day inventory
According to her, the DOE has already required petroleum companies to submit a 30-day inventory of their available fuel.
The 2025 General Appropriations Act has earmarked P2.5 billion for subsidies to drivers of public utility vehicles, taxis, ride-hailing services and delivery platforms nationwide through the Department of Transportation.
The Department of Agriculture, on the other hand, has been given P585 million to provide assistance to farmers and fishers who may be adversely affected by higher fuel costs.
The fuel subsidy grant for public transport drivers and farmers is automatically activated once the DOE issues a certification that the average monthly price of Dubai crude has exceeded $80 per barrel.
According to the DOE, the price of Asian benchmark Dubai crude has reached $73 per barrel as of June 16.
To ensure the stability of both supply and pump prices, the DOE has started inspecting oil depots in Manila to check whether industry players are complying with the requirement to maintain at least a 30-day inventory of crude oil and a 15-day inventory of finished petroleum products.
In light of global oil price increases, Jetti Petroleum said it is willing to adjust its pump prices on a staggered basis should the government require it.
“The company is closely monitoring the events in the Middle East and how they affect markets. We have been formulating contingency plans to cope with the situation,” Jetti Petroleum president Leo Bellas said in a message to reporters.
Bellas said that based on the initial trading in the world market, the prices per liter of diesel might go up by P3 and gasoline by over P2 next week, although he clarified that other events could affect the pump price adjustments.
