Oil firms: Fuel supply sufficient until April but uncertain beyond that

Several oil companies on Thursday said they still have enough fuel supply until April, but the importations beyond that is uncertain amid the heightened tensions in the Middle East. 

During the continuing hearing of the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) hearing, Chevron Philippines Inc. president and Country Chairman Pongtorn Tangmanuswong said that their inventory is only sufficient until the last week of April. 

“At the moment, we’re in the finalization stage of the May shipment, which is yet to be confirmed,” he said. 

“Right now, the issue is pretty much on the pricing. The supply is tight, but for Chevron, it’s still manageable at least for March and April,” he added.

Shell Pilipinas Corporation president and CEO Lorelie Quiambao-Osial, meanwhile, said that if the conflict persists, there would really be tightness in supply in the entire world, with Asian countries being among the first to be affected. 

“While we adhere to and maintain what is required by the government when it comes to inventory levels, at times like this, we recognize that is not enough and therefore we’re exerting best efforts to still go beyond the minimum, making sure that we have enough stock coverage,” she said.

“While there are molecules out there, it’s still available, but then with the elevated prices, it’s really felt,” she continued. 

Jetti Petroleum, Inc. Corporate Affairs Manager Johann Marc Aseoche also raised difficulty in maintaining supply, saying that they only have a 20-plus-day stockpile remaining in their depots. 

“Fortunately, we have kept all our stations open. There is still adequate supply, so wala pa pong nagsasara sa aming network of stations (none of our stations has closed yet),” Aseoche said. 

Petron Corporation General Manager Lubin Nepomuceno also admitted that securing crude and finished products continues to be a challenge, noting replenishments have been halted due to the closure of the Strait of Hormuz.

He thus underscored the importance of prioritizing ensuring sufficient supply of fuel in order to keep the industry running. 

“Supply disruption is more expensive and will be a catastrophic consequence for the economy,” Nepomuceno said. 

“On price control, if the prices are capped, oil companies will not be able to absorb losses and resort to business stoppage, unless the government is willing to subsidize. This will result in fuel shortages as the oil companies will not be able to procure supply replacements at much higher costs,” he added. 

Meanwhile, Independent Philippine Petroleum Companies Association (IPPCA) president Tanya Samillano said that the fuel deliveries for its members are only certain until April. 

“Our members have already confirmed with the DOE that so far, our incoming importations are still arriving, but we haven’t received any confirmation for future deliveries beyond April,” she said. 

“Future importation tenders haven’t been confirmed up to now. It’s on a ‘wait and see’ [basis]. Although there are some offers available in the market, but the price is very high,” she added.

IPPCA’s members include Eastern Petroleum, SeaOil, UniOil, Flying V, and LiquiGaz, among others.

To recall, the Department of Energy (DOE) has said that the current supply of fuel products in the country is sufficient until mid-May amid public concerns due to price volatility resulting from the Middle East tensions. 

Energy Secretary Sharon Garin, however, admitted that the Philippines may face a severe fuel shortage in the next few months as a worst-case scenario, should the conflict heighten further. —AOL, GMA Integrated News