Marcos: Crude oil supply good till end of June
President Marcos on Friday assured the nation that the government had secured sufficient supply of crude oil until the end of June, plus up to 45 days’ worth of various other fuel products.
The President said the Philippines, a petroleum importer, has been exploring alternative fuel sources from other countries outside the Middle East, such as Japan, South Korea, China and Russia.
“We already have supply of crude oil until June 30,” the President said in a statement to reporters. “But we are continuing to look for supply and we are continuing support for our commuters.”
On Wednesday, Mr. Marcos said he ordered the Department of Energy (DOE) not to stop looking for additional fuel sources, even though the country currently has up to 45 days’ worth of supply.
According to the DOE, Mr. Marcos was referring to various types of fuel like gasoline, diesel, kerosene, jet fuel, fuel oil and liquefied petroleum gas (LPG).
The country imports diesel—the main fuel for transporting passenger and cargo, agricultural machinery and marine vessels—from South Korea, Indonesia and China, which have now restricted their exports.
On Monday, around 700,000 barrels of Russian crude oil were delivered to Petron Corp., which used to be government-controlled. It was unclear whether the crude oil supply that the government had secured, according to the President, included this shipment.
“Continue looking for additional supply because we do not know how long this situation will last … or how long the supply is going to be diminished from the Middle East through the Strait of Hormuz,” the President said he told the DOE.
The narrow strait, where about one-fifth of the world’s oil supply passes, has been blocked by Iran since Israel and the United States attacked the country on Feb. 28. The ensuing conflict has affected the Middle East and resulted in sharp spikes in petroleum prices worldwide.
To cope with the situation, Mr. Marcos issued Executive Order No. 110, declaring a state of national energy emergency that will be in effect for one year, unless sooner lifted or extended.
This emergency measure adopts the Unified Package for Livelihoods, Industry, Food, and Transport as a coordinated, whole-of-government response framework. It is aimed at ensuring a stable domestic energy supply, uninterrupted essential services, continued economic activity and the protection of citizens’ welfare.
An oil industry source told reporters that there would still be spikes in diesel prices next week, but gasoline prices would be modest.
The per-liter price of diesel could increase by P11 to P12, according to the source, an oil company executive who spoke on condition of anonymity.
Fresh diesel shipment
This could push regular diesel prices at the pump to more than P140 per liter and premium diesel above P150 per liter.
Gasoline may remain unchanged or go up by P3 per liter. The source said the de-escalation signals in the Middle East conflict was driving the price movement.
He added that gasoline prices, which are largely affected by risks to crude and regional supply, had eased as fears of extended shortages were somewhat reduced. Gasoline is mainly used by private cars, motorcycles, tricycles and light utility vehicles.
Official price movements are announced on Mondays, with oil companies scheduled to impose price adjustments every Tuesday. This week, local fuel retailers implemented the following increases: P8 to P12 per liter for gasoline; P15 to P18 for diesel; and P12 to P22 for kerosene.
The government has allotted P20 billion to purchase 2 million barrels of diesel (equivalent to about 318 million liters), which is good for 10 days.
The DOE said that on Thursday, the Philippines had received the first shipment of diesel imported under the government’s Emergency Energy Security Program. The 142,000 barrels of diesel, equivalent to 22.5 million liters, would be sold at cost to local fuel retailers, the DOE said.
According DOE data as of March 20, the gasoline inventory may last for 53 days, the diesel inventory for 45 days and the kerosene inventory for 97 days.
Arnel Ty, founder of LPG Marketers Association Inc. and Regasco president, advised households and food businesses to brace for a minimum increase of P30 per kilogram for LPG in April.
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