Article by:
Filane Mikee Cervantes
MANILA – An official from the Department of Energy on Monday assured the public that the Philippines has enough supply of fuel products.
During a Fuel Crisis Ad Hoc Committee hearing at the House of Representatives, Energy Undersecretary Gerardo Erguiza said the fuel crisis problem lies with the rising prices, as he called on Congress to revisit the 1998 Downstream Oil Industry Deregulation Act.
“Wala po problema sa supply, ang inventory is more than 40 days… ang problem ho natin ngayon is presyo pero quantity wala ho tayong problema (We don’t have a problem with supply. We have more than 40 days in our inventory. The problem is with the price, but we don't have any problem with the quantity),” Erguiza told lawmakers.
In her opening remarks, House Committee on Economic Affairs chair, Rep. Sharon Garin, said the hearing is being held because of the direct impact of the fuel crisis on economic stability at a time when the country is just beginning to ease Covid-19 pandemic restrictions.
“This assembly is critical because no one is spared from the effects of the continuous price hikes of fuel. The rising prices of domestic petroleum will have a direct effect on our economic stability, just when we are starting to relax our restrictions due to Alert level 1,” Garin said.
Garin said while the incessant oil price hike for the past two months is inevitable due to the ongoing geopolitical tensions, the government is working towards finding solutions to help cushion the impact of the crisis.
"All industries, especially our transportation sector, will be grossly affected. DOE data have shown that from January to March alone, diesel prices per liter have increased by as much as 12 pesos,” Garin said.
On the issue of subsidy for the transport sector, LTFRB Chairman Martin Delgra III said the PHP2.5 billion fuel subsidy program is already in place and just needs funds to be downloaded from the Department of Budget and Management (DBM).
Meanwhile, House Ways and Means Committee chair Joey Salceda reminded the panel there is a legal framework to subsidize not just the jeepney operators but also the UV express, taxis, tricycles and habal-habal.
He also gave a presentation on the macroeconomic effects and potential effects of rising fuel prices on basic commodities.
Salceda also said an estimated PHP75.2 billion in revenue from Value Added Tax (VAT) and oil excise could be used to alleviate the current crisis.
He proposed another option, which is the Katas ng TRAIN (KNT) package, similar to the Arroyo administration's Katas ng VAT (KNV) program.
He explained that PHP68.8-billion revenue collection from the KNT could be utilized to subsidize electricity, fertilizer, small fisherfolk and social pension for this year.
The panel would also recommend in their report to conduct a special session in light of the current fuel crisis.
The Palace also called on the Congress to review the Oil Deregulation Law, particularly provisions on unbundling the price, and the inclusion of the minimum inventory requirements in the law, as well as giving the government intervention powers/authority to intervene when there is a spike and/or prolonged increase of prices of oil products--as part of the government's medium-term measures.
The government is also eyeing the building of the strategic petroleum reserve infrastructure, ensuring Minimum Inventory Requirements, and advocating for energy conservation and efficiency.
The Department of Trade and Industry's recommendations to accelerate renewable energy adoption; support investments in Utility-Scale Battery Storage to maximize utilization of renewable energy sources; support investments in modern storage facilities for oil and grains to increase within-the-border holding capacity; and empower the private sector to help in strategic stockpiling will be put in place, as further approved by President Rodrigo Roa Duterte. (PNA)
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