Manila: A phased fuel contingency plan has been laid out to ensure stable supply and cushion the impact of the ongoing Middle East crisis, as senators also push for tax relief measures to ease rising fuel prices. Department of Energy (DOE) Undersecretary Felix William Fuentebella said Tuesday the plan includes immediate, medium-term, and strategic actions to manage supply risks and price pressures.
According to Philippines News Agency, the framework was presented during the Senate's Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee hearing. It covers measures from zero to 180 days, including intensified inventory monitoring, coordination with local governments, and expanded sourcing of fuel supply. Fuentebella assured that the country's fuel inventory remains sufficient, stating, "Our inventory has not been breached. We have sufficient supplies but we will not let our guards down."
Immediate steps involve mobilizing the Philippine National Oil Company (PNOC) to secure additional cargoes, engaging oil firms on staggered price adjustments, and enforcing measures against hoarding and profiteering. In the medium term, the DOE is exploring additional suppliers and regional cooperation, such as the ASEAN Petroleum Security Agreement (APSA), while long-term reforms focus on renewable energy development and reducing dependence on imported fuel.
The DOE also proposed legislative actions, including the passage of an Emergency Petroleum Reserve Act, amendments to the Biofuels Act, and a supplemental budget for PNOC to sustain fuel procurement.
During the hearing, Senator Bam Aquino emphasized the need for immediate relief through tax adjustments to lower pump prices. He mentioned that lawmakers are considering reducing the value-added tax (VAT) on fuel, in addition to suspending the excise tax already approved by the Senate. Senator Loren Legarda supported a review of VAT on petroleum products, highlighting its significant impact on pump prices and the subsequent domino effect on all goods.
Fuentebella noted that the DOE is coordinating with economic managers on possible tax adjustments while emphasizing the importance of demand-side management and energy conservation. The PROTECT Committee is expected to consolidate policy measures to ensure a coordinated response, as the government seeks to stabilize supply, manage prices, and mitigate the broader economic impact of the crisis.
