AMID RUSSIA-UKRAINE CONFLICT

Gatchalian urges DOE to come up with contingency plans for possible oil supply disruptions

Senator Sherwin Gatchalian on Friday said the tension between Russia and Ukraine could aggravate the increase in prices of oil products.

Gatchalian, chairperson of the Senate Committee on Energy, said oil prices would certainly increase as economies start to open because of the decline in the number of COVID-19 infections.

He noted that the situation between Russia and Ukraine adds to that increase as Russia is a major global supplier of gas and oil.

"Even if Russia is not a supplier of oil and gas to the Philippines, the global supply disruptions will cause oil prices to escalate in the short to medium term," Gatchalian said.

Due to this, Gatchalian, a reelectionist in the May elections, urged the Philippine government to provide assistance to public utility drivers through the Pantawid Pasada. He said e-wallets should be used to immediately deliver the aid to drivers.

He said the Pantawid Pasada should be extended to food transporters as well.

Gatchalian also called on the Department of Energy to formulate contingency plans in case of oil supply disruptions due to the crisis in Ukraine.

"Monitor global oil prices closely which may escalate in months to come due to uncertainty. We may need to suspend excise taxes as the last resort," he said.

"There is no overnight solution to reduce oil prices in our country. The only way to do that is to reduce our dependence on imported oil by exploring more domestic sources of oil and gas and transition in electric vehicles in the years to come," Gatchalian added.

On Thursday, Russia launched its attack against Ukraine, drawing international condemnations, warnings and sanctions from countries, including the United States. There were already reported fatalities following the attack.

US President Joe Biden branded Russia's move as "unprovoked and unjustified."

The Philippine government has enforced Alert Level 2 on Ukraine, meaning repatriation or evacuation is voluntary. —Anna Felicia Bajo/KBK, GMA News