DOE warns of looming fuel price hike amid Middle East tensions

Motorists may face another round of fuel price increases next week as global oil markets remain volatile amid tensions in the Middle East, the Department of Energy (DOE) said on Wednesday.

Energy Secretary Sharon Garin said a new adjustment in pump prices could take effect Tuesday, following the ₱1.90 per liter increase implemented this week.

“Unang-una, wala pa kaming ina-announce na price increase kasi nag-increase na tayo kahapon ng ₱1.90,” Garin said in a radio interview with Super Radyo dzBB.

(First of all, we have not yet announced a price increase because prices already went up by ₱1.90 yesterday.)

However, she indicated that another hike is likely in the next round of adjustments.

“Mag-i-increase tayo next week, Tuesday (There will be an increase next week, Tuesday),” she added.

Garin said global developments, particularly in the Middle East, continue to drive oil price movements.

She noted that a significant portion of the country’s fuel supply passes through the Strait of Hormuz, a key global shipping corridor.

“So, mga halos 80% to 90% ng fuel natin dumadaan sa Strait of Hormuz. So, major na problem ‘yan,” she said.

(Around 80% to 90% of our fuel passes through the Strait of Hormuz, so that is a major concern.)

Despite the looming price hike, Garin assured the public that the Philippines has adequate fuel reserves.

“We met with the oil companies and they assured us na sufficient ‘yung supply nila, na they have enough time to order for some more kapag kumaunti na,” she said.

(We met with the oil companies and they assured us that their supply is sufficient and that they have enough time to order more when stocks begin to run low.)

She added that the country has at least two months’ worth of fuel stock.

“We were assured na at least mga dalawang buwan na stock meron tayo na kayang-kaya natin,” she said.

(We were assured that we have at least about two months’ worth of stock that can sustain us.)

Meanwhile, Garin said the government is studying policy measures to cushion the impact of rising oil prices.

She expressed support for proposals to amend the Oil Deregulation Law to give the government more authority in addressing price shocks.

“Dapat talaga i-amend na ‘yan… para may kaunti namang police power ang gobyerno sa mga oil companies natin,” she said.

(That really needs to be amended so the government can have some police power over oil companies.)

Garin also welcomed a proposed House bill seeking to grant Ferdinand Marcos Jr. the authority to temporarily suspend fuel excise taxes when global oil prices spike, although she emphasized that such a measure should not be permanent.—MCG, GMA Integrated News