Manila: The Department of Energy (DOE) may shift to a fixed price adjustment strategy next week if oil prices remain volatile. This potential change comes as the DOE seeks to stabilize domestic fuel prices in response to fluctuating international crude oil markets.
According to Philippines News Agency, Energy Secretary Sharon Garin announced during a virtual briefing on Monday that the DOE is considering implementing a fixed price adjustment. "Next week, if things are still volatile, wala na po 'yung range, kundi 'yung definite amount nalang na (there will be no range, but just the definite amount, which is) maximum or minimum, whether it's rollback or oil price hike," Garin stated. She attributed the volatility to renewed geopolitical tensions in the Middle East, which have reignited concerns over potential global oil supply disruptions.
Garin highlighted that increased tensions in the region, specifically threats to navigation through the Strait of Hormuz, have emphasized the vulnerability of this key energy trade corridor. This situation has placed upward pressure on international crude oil prices, consequently affecting domestic pump prices. As a result, consumers can expect a slight increase in fuel prices, with gasoline potentially rising or decreasing by PHP1 per liter starting Tuesday.
For diesel, motorists should anticipate an increase of PHP2.62 to PHP4.62 per liter, while kerosene prices are expected to rise by PHP2.22 to PHP4.22 per liter. Despite these fluctuations, the DOE reassured the public that the country maintains a sufficient fuel supply, averaging 47.87 days' worth as of July 10.
Further breakdown of the supply data shows that gasoline stocks will last for 48.17 days, diesel for 45.69 days, kerosene for 148.98 days, jet fuel for 80.09 days, fuel oil for 33.37 days, and liquefied petroleum gas for 39.51 days. Garin emphasized the DOE's commitment to closely monitoring global developments and implementing strategies to protect the country's energy security, mitigate consumer impacts, and ensure a stable fuel supply.
To alleviate the burden of rising petroleum prices, the government has previously initiated a fuel subsidy program. DOE Director Rino Abad reported that as of July 13, PHP267.7 million in subsidies have been disbursed, benefiting 83,381 recipients. Additionally, 2,723 gasoline stations nationwide are participating in the program, providing much-needed relief to consumers facing increased fuel costs.
