THE Philippines is stepping up efforts to secure alternative fuel sources, President Ferdinand R. Marcos, Jr. said on Thursday, because the escalating war within the Middle East continues to threaten global oil supplies and risk driving prices even higher.
Mr. Marcos said the federal government is working toward “soften[ing] the blow” of the war, adding it has secured enough supplies of food and oil.
“What we’re monitoring now are the costs. For food, we will do more — we’re searching for ways to bring food prices down,” he told reporters in Filipino during an inspection in Bataan.
“As for oil, there’s nothing we will do about that, but not less than we’re ensuring supply might be available.”
He added the federal government is searching for alternative sources of oil to make sure the country has adequate stock, noting that Philippines suppliers have committed to honor their contracts.
“Fertilizer, petroleum products, that won’t be an issue because our suppliers promised to honor their contracts.”
Energy Secretary Sharon S. Garin earlier said the country is taking a look at other sources of oil, just like the US, Canada, Russia or South American countries, because the Middle East continues to be heavily affected by the Iran war, making prices of commodities higher.
In a bid to cushion the impact, the federal government has earlier ordered discounts on public trains, with a possible move to offer relief on toll roads.
Mr. Marcos also blocked a planned public transportation vehicle fare hike, drawing criticisms from drivers and operators scuffling with the rising fuel prices.
“Our real goal here is to preserve people’s livelihoods — so that they proceed to have a method of earning,” he said. He explained that while he suspended the fare hike, the federal government plans to offer assistance to offset high costs.
“The fare hike will just be deferred, and as a substitute, we’ll increase the help provided to them.”
He also said the federal government is finding different methods to offer subsidies.
Finance Secretary Frederick D. Go earlier said he met with private oil firms over the weekend to explore additional steps to diversify fuel sourcing by widening the Philippines’ pool of suppliers.
He noted the country currently imports fuel from just 4 markets — South Korea, Japan, Singapore and China.
As a precaution, he added that Philippine National Oil Co.-Exploration Corp. will purchase about two million barrels from global markets to accumulate the country’s oil buffer stock.
CONTINGENCY PLAN
Meanwhile, the Senate on Wednesday adopted a resolution looking for to determine an ad hoc committee in control of overseeing national contingency plans on addressing the oil shock.
“It’s imperative that the country doesn’t stagnate in its efforts to handle emerging crisis nor remain confined to a reactive posture, but as a substitute adopt a proactive approach and be a step ahead,” the Senate Resolution No. 350 read.
Senator Sherwin T. Gatchalian, because the chairperson of the Senate Committee on Finance, will lead the ad hoc committee.
“We embrace the challenge posed by this committee at this important time, and we’re committed to making sure that every one assistance and mitigation measures might be not only sufficient but additionally sustained,” Mr. Gatchalian said in a press release.
The resolution proposed the creation of the ad hoc committee named Proactive Response and Oversight for Timely and Effective Crisis Strategy tasked to evaluate the contingency plans of the federal government, including those from the Executive branch, regarding the impacts of the US-Israel war on Iran.
Iran’s military leadership has warned oil could surge to as much as $200 a barrel, as tensions escalate within the Strait of Hormuz, where disruptions have effectively choked off a key global supply route that carries a few fifth of the world’s oil and liquefied natural gas.
Fuel prices surged on Tuesday, with gasoline rising by P12.90 to P16.60 a liter, diesel by P20.40 to P23.90 and kerosene by P6.90 to P8.90, marking one among the steepest weekly increases this yr.
Data from the Department of Energy showed pump prices may climb as high as P91.60 per liter for gasoline, P114.90 for diesel and P143.79 for kerosene.
The federal government is now ramping up its money relief assistance to probably the most vulnerable, including transport employees within the capital region who began receiving P5,000 earlier this week. — Chloe Mari A. Hufana and Kaela Patricia B. Gabriel