go through Sheldeen Joy Talavera and Chloe Mari A. Hufana, reporter
Oil companies have agreed to implement price increases in pumps twice this week to ease the burden on consumers, the Department of Energy (DOE) said on Monday.
Seoil Philippines, Shell Pilipinas Corp., Petron Corp., Petrogazz Ventures Philippines Corp., Unioil Petroleum Phils. , Inc. , Jetti Petroleum Inc. and Cleanfuel said they will pass P2.60 diesel p2.60 carne and p2.40, and they will increase the price of gasoline.
The second round of prices will be implemented on June 26 or June 27.
Seaoil, Shell, Caltex and Petron said they will increase gasoline prices on June 26, with P1.75 per liter, diesel p2.60 and kerosene from P2.40 per liter. Jetti and Petrogazz will raise the price of pumps on June 27 on June 27.
The U.S. Department of Energy said on Monday it met with representatives from the downstream oil industry who agreed to the staggered implementation Large-scale prices rose this week.
“Today’s conversation with industry players reflects our shared commitment to balancing economic reality and the need to protect our people from sudden price shocks, and we are pleased to report that they have responded positively to our demands.”fSharon S. Garin said in a statement.
Attendees during the U.S. Department of Energy conference were Petron, Shell Pilipinas, Caltex, Jetti Petroleum, Petrogazz, Petrogazz, Phoenix Petroleum, PTT Philippines, Seaoil, Total, Unioil Petroleum Philippines, Filpride, Filpride and Cleanfuel.
DOE earlier estimated diesel prices would rise P4.30-P4.80; and gasoline per liter of P2.50-P3 this week.
Global crude oil prices soar amid escalating conflicts in the Middle East. The latter’s parliament is now considering closing the Strait of Hormuz, a waterway between Iran and Oman, after the United States attacked several nuclear sites in Iran, Reuters reported.
Deputy Minister of Energy Alessandro O.
“We are closely monitoring global oil price benchmarks and forex trends, but we also urge them to exercise caution in terms of cost changes to consumers,” he said.
He added: “Most of the recent price volatility is not driven by actual supply disruptions but speculative trading due to geopolitical uncertainty.”
The U.S. Department of Energy said it is taking steps to “ensure adequate domestic fuel supply, including complying with mandatory inventory requirements of oil companies.”
Under existing regulations, oil companies must keep a 30-day fuel list.
Meanwhile, Ms. Garling also urged oil companies to expand the number of their retail stations to provide fuel discounts for the transportation sector.
Economic Team Meeting
Meanwhile, young President Ferdinand R.
Palace Press official Clarissa A. Castro declined to provide more details about the meeting but said the government is preparing to provide fuel subsidies for public utility vehicle drivers. The government allocated pesos 2.5 billion to the initiative.
If global crude oil prices violate the $80 per barrel threshold, fuel subsidies for public transport drivers and Fisherfolk will be automatically triggered.
“This will cause a domino effect [and] Deal,” Ms. Castro said in the Philippines.
Meanwhile, Ms. Garling plans to meet with transport and agriculture officials on Tuesday to discuss the timely launch of targeted subsidies for public transport drivers and farmers.
As of June 23, the average price of Dubai crude oil was $75.16 per barrel.
Ms Castro said Mr Marcos assured Filipinos were doing their best to ease the impact of the upcoming oil crisis.
“We are ready for anything that can happen, and the government will meet all the needs of the people and they should not worry because the government works for all of us now,” she said in the Filipino.
Over-reliance on imports
In an escalating conflict Edgar Benedict C. Cutiongco, president of the Philippine Petroleum Association, said the Middle East should focus on how to reduce its dependence on imported oil by promoting local upstream exploration.
Mr. Cutiongco told BusinessWorld There is a need to increase incentives and support DOE’s efforts to attract investment in oil and gas exploration and production, including “attractive fiscal terms and a stable regulatory environment”.
“In order to improve the overall landscape, incentives are reevaluating their current focus of the upstream oil industry,” he said. “While the downstream industry has inherently gained inherent benefits from a stable indigenous fuel supply, further improvements include strengthening one-stop shops for incentives from net oil sharing to total production sharing.”
He added that the government should “prioritize and accelerate exploration in clear Philippine jurisdictions while closely monitoring the development of the West Philippine Sea.”
The upstream sector of the oil and gas industry focuses on the exploration, drilling and production of crude oil and gas.
The Philippines imported 3.476 billion liters of crude oil in the first half of 2023, up 23.7% in 2022.
Meanwhile, Ibon Foundation executive director Jose Enrique “Sonny” A. Africa said the Philippines has limited maneuver space because it depends on imported fuel.
“These make us very vulnerable in any escalation in the Israel-Iran conflict,” he said in a Viber chat.
Mr Africa said any rise in oil prices would inflate inflation and deepen inequality.
“For example, rice prices are susceptible to oil prices’ impacts on diesel fuel, transportation, fertilizers and other production costs,” he added. “Governments should be aware of reducing their dependence on global turmoil and building a more resilient domestic economy to build a more resilient domestic economy with greater food and energy self-sufficiency.”
