THE Department of Energy (DoE) asked the oil industry to adjust their prices in a staggered manner, in order to minimize the price shocks from the outbreak of conflict between Israel and Iran.
“The DoE is appealing to industry players to implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, in order to cushion the impact on consumers,” it said in a statement on Tuesday.
The DoE added that it inspected fuel depots in Manila on Tuesday to ensure compliance with the rules on maintaining adequate inventories.
“Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy,” DoE Officer-in-Charge Sharon S. Garin said.
“Through close coordination with the oil industry and strict monitoring of inventory levels, we are working to maintain energy security while preparing targeted interventions to support the most affected sectors,” she added.
Currently, oil companies are required to maintain at least a 15-day inventory of finished petroleum products.
The DoE said that the government is ready to roll out fuel subsidies to transport operators and farmers, to contain the broader impact of high fuel costs on the prices of basic goods and services.
As of June 16, the price of Dubai crude, the benchmark for much of the oil sold to Asia, was $73 per barrel.
A reading of global oil markets on Monday indicates that next week’s price adjustments could be “quite hefty,” according to Jetti Petroleum, Inc. President Leo P. Bellas.
Mr. Bellas said that the company is willing to stagger any price increases if required.
“The company is closely monitoring the events in the Middle East and how they affect markets. We have been formulating contingency plans to cope with the situation,” he said.
On Tuesday, oil companies implemented a hike of P1.80 per liter for both gasoline and diesel, and P1.50 per liter for kerosene.
The latest price hikes bring the year-to-date adjustments to P6.90 per liter for gasoline and P6.65 per liter for diesel. Kerosene prices, meanwhile, have declined by P0.75 per liter since January. — Sheldeen Joy Talavera