By Erika Mae P. Sinaking, Reporter
PRESIDENT Ferdinand R. Marcos, Jr. said the Philippines has secured enough fuel supply to last beyond 45 days despite disruptions brought on by war within the Middle East, as the federal government scrambles to line up alternative sources and ensure existing contracts are fulfilled.
Speaking on Wednesday, Mr. Marcos said authorities hurried to be certain deliveries under previously signed contracts continued to succeed in the country, whilst uncertainty initially froze communications with oil suppliers.
“To start with, our suppliers couldn’t even tell us what was happening, they usually couldn’t give us prices,” he told a livestreamed briefing in Filipino from the presidential palace. “But through constant engagement and by putting latest systems in place, supply has continued to are available in.”
Global oil markets have been jolted by escalating tensions within the Middle East, a key supply region, raising concerns over shortages and better prices for fuel-importing countries equivalent to the Philippines. The country relies almost entirely on imported petroleum products.
Mr. Marcos said the federal government just isn’t relying solely on traditional suppliers within the region. Officials have been reaching out to alternative sources unaffected by the conflict, though he cautioned that it continues to be too early to say whether latest contracts have been finalized.
“It will be premature to say that every thing has been perfected. But things are starting to open up,” he said. “I’m very confident in saying that we’ve sufficient supply.”
The Department of Energy (DoE) on Tuesday said the Philippines has a mean fuel inventory reminiscent of about 45 days of supply, though levels vary by product.
Mr. Marcos expressed confidence that additional shipments would arrive before stocks run low, ensuring a gradual flow moderately than isolated deliveries.
“We may be fairly confident that after the 45 days, we’ll have already got oil arriving here within the Philippines,” he said. “Not only one delivery, not only two deliveries, but a flow of petroleum and petroleum-related products.”
Mr. Marcos credited the country’s diplomatic ties for helping secure continued access to fuel, noting that good relations with partner countries have played a key role in keeping supply lines open.
Authorities, he said, would proceed to explore latest sourcing arrangements while monitoring global developments, as energy prices remain vulnerable to further geopolitical shocks.
He and Energy Secretary Sharon S. Garin earlier said the country is talking to China, Russia, the US, South American countries, Brunei, South Korea, Japan and India, amongst others, for oil supply, noting the discussions yield positive results.
As a net oil importer, the Philippines is especially vulnerable to disruptions in global oil supply and volatility in prices. It imports nearly all of its crude oil from the Middle East, with Saudi Arabia as its top supplier.
At the identical time, the Department of Budget and Management (DBM) has approved the discharge of P20 billion to the DoE to secure fuel supply for the country.
The funds were released on March 24 through a Special Allotment Release Order (SARO) and Notice of Money Allocation (NCA), which was sourced from the Malampaya Gas Fund under the Special Account within the General Fund (SAGF), the DBM said in an announcement.
The P20 billion will fund the “strategic procurement of fuel products — including diesel, gasoline, and liquefied petroleum gas (LPG) — to spice up national fuel inventory, stabilize pump prices, and ensure uninterrupted operations across transport, logistics, agriculture, emergency response, and other critical sectors.”
It is going to be implemented by the Philippine National Oil Company-Exploration Corporation, which has already began procurement.
‘DO NOT PANIC’
On Tuesday evening, Mr. Marcos placed the country under a national state of energy emergency under Executive Order (EO) No. 110, noting the continuing war’s imminent threat to the country’s energy supply. The order shall be in effect for a yr.
The President on Wednesday clarified that the declaration was only a “precautionary tool” and that only the energy sector was covered by the state of emergency.
“I would like to guarantee everyone that this doesn’t mean that we must always panic. It signifies that we’re doing every thing that we will to evaluate and to alleviate the situation,” Mr. Marcos said.
Under the EO, the President created the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) committee for a coordinated response in stabilizing fuel supply, sustaining economic activity and protecting sectors most exposed to rising energy costs.
The EO also allows authorities to focus interventions on ensuring adequate energy supply and mitigating price spikes while mobilizing government resources more efficiently.
“The source of the issue is the availability and the value of energy, and that’s what we want to deal with directly… The explanation that I declared an energy emergency is to offer government with more options should the necessity arise,” Mr. Marcos said.
Transport employees are planning a two-day strike starting Thursday to protest surging oil prices and demand a fare hike, a move Mr. Marcos rejected last week.
In addition they want him to chop or halt excise taxes on petroleum products to minimize oil prices.
Mr. Marcos on Wednesday signed into law Republic Act No. 12316, a measure granting him the ability to temporarily suspend or reduce excise taxes on petroleum products to mitigate the impact of rising global oil prices.
Asked if the federal government will take control of the oil industry, the President said he hopes the situation won’t call for the move.
“We don’t wish to get into that discussion,” Mr. Marcos told reporters and refused to take follow-up questions.
Jay M. Layug, a former energy undersecretary and executive board member of the Philippine Energy Research and Policy Institute, echoed the President’s remarks.
“No have to take control of oil firms,” he said in a Viber message.
“What government must do is implement multiple measures to administer demand for petroleum and conserve energy use. Example, coding system expansion, carpooling, expanded WFH (work-from-home) program, expanded EV (electric vehicle) program, etc.”
The federal government had already mandated a four-day workweek for presidency offices to minimize energy use.
Fuel prices climbed again this week, extending one in all the longest runs of increases lately.
Noel M. Baga, co-convenor of the Center for Energy Research and Policy think tank, said the declaration is overdue, noting that the legal tools were already in place and that recent price hikes and suspended public utility operations highlighted the urgency of stronger motion.
“Every power generation project within the pipeline should be fast-tracked,” Mr. Baga said. “The emergency declaration signals that the federal government is finally treating this because the crisis it’s. The subsequent measure of seriousness is whether or not price ceilings follow.”
INFRA SPENDING
Meanwhile, the DBM said it has also released P16.5 billion to the Department of Public Works and Highways (DPWH) in a bid to speed up infrastructure spending and support economic growth.
The funds shall be released via the issuance of an NCA to the DPWH Central Office and shall be used to cover the settlement of the department’s due and demandable accounts payable.
“Upon the order of the President, we’re accelerating infrastructure spending to maintain projects moving and the economy growing. This P16.5 billion release ensures that obligations are paid on time,” Budget Secretary Rolando U. Toledo said in an announcement.