PHL is looking for alternative fuel sources; Manibela says fare hike will be ‘last resort’
By Erika Mae P. Sinaking again Kenneth Christiane L. Basilio, Journalists
THE Philippine GOVERNMENT is looking for more fuel suppliers to help maintain the country’s oil supply as global oil markets continue to fluctuate, President Ferdinand R. Marcos, Jr. said.
“We are talking to many other countries from which we used to buy oil,” said Mr. Marcos told a news conference broadcast live in New York City.
He said the government hopes to reach agreements that will allow the Philippines to secure more oil exports and diversify its sources of supply.
The President said the country’s fuel supply is still sufficient for now, as stocks are available in the country and more shipments are on the way.
“In terms of supply, we are in a good position,” he said. “Not only do we have the goods in the Philippines, we are waiting for other goods to be transported.”
Authorities are monitoring incoming shipments to ensure they do not pass through high-risk areas, Mr Marcos added, noting that the possible closure of the Strait of Hormuz has not been included in the country’s supply chain.
Despite stable supply expectations, domestic consumers are already facing higher fuel costs as global oil prices raise pump prices.
The Department of Energy said the price of kerosene could reach P122.67 per liter on March 12 after an increase of P36.
Diesel prices are expected to drop to around P84.75 per liter following a total increase of P24.25 in three days, while Ron 91 gasoline may go up to P60.85 per liter.
The changes are part of a series of dramatic increases announced in the week of March 10 to 16 as local fuel stores respond to higher global oil prices.
“We try to keep prices low, but there is an inevitable result,” said Mr. Marcos. “When oil goes up, everything goes up.”
Global crude prices recently rose above $100 per barrel before falling below $90, he added, noting that uncertainty remains about how long the Iran war will last and how long prices will remain high.
Because the high cost of fuel includes the prices of goods and services, the President said that the government is seeking emergency powers from Congress that will allow it to intervene if the world oil prices remain above $80 a barrel for a month.
Possible measures include suspending excise duties on fuel products and increasing subsidies for sectors most affected by rising energy costs.
The government’s fuel subsidy program is expected to start next week, authorities said, as the government tries to limit the impact on public transport drivers and other vulnerable sectors.
‘NOT NORMAL’
Transport groups said they may stop asking for fare increases if the government continues to release tax and financial assistance.
Jeepney drivers are already losing P400 to P500 a day due to the high cost of fuel, according to Mar S. Valbuena, chairman of the Manibela transportation association.
“The increase in fuel products is not a normal thing,” he told the lawmakers at a hearing in the House of Representatives. “If this increase in fuel prices continues, we may lose even more of our income.”
Drivers usually earn around P800 a day, which means the recent price increase significantly reduces their take home pay, he added.
Oil retailers have raised pump prices several times this year as global oil prices rise. This week’s adjustment, from P7 to P38.50 a liter, notes 11.th straight increases for diesel and kerosene and nine for gasoline.
Mr. Valbuena said that transportation agencies can ask for a P2 fare increase but he described it as a last resort because higher fares may cause inflation.
“Requesting an increase in fares is our last resort,” he said, urging lawmakers to quickly approve a measure that would allow the government to suspend the fuel excise tax so drivers can keep more of their money.
Other transport groups have echoed these concerns. Orlando Marquez, Sr., national president of the League of Transportation Operators of the Philippines, said the operators have been demanding fare adjustments for a long time to end the increase in operating costs.
Meanwhile, George Jalandoni, the president of the UV Express Association, said van drivers should be included if the authorities decide to increase public transport fares.
“I hope that UV Express vans will be included in the fare increase,” he told the law enforcement, noting that drivers are also struggling with fuel costs.
Officials of the Land Transportation Franchising and Regulatory Board said the agency is reviewing many pending payment requests.
Greg G. Pua, Jr., a member of the regulatory board, told the lawmakers that the authorities will act quickly if necessary to adjust the fares.
“Almost all of them have applications pending,” he said. “We confirm [everyone] that we will act quickly and leave no one behind.
Arsenio M. Balisacan, head of the Department of Economy, Planning, and Development, on Tuesday warned that inflation may increase up to 5.1% this month as high oil prices increase the cost of travel and transportation in the entire economy.
