Gov't, oil firms solidify plans to cushion oil price hike impacts

Government officials and oil companies' executives have solidified plans to maintain sufficient fuel product supply in the country amid the tension in the Middle East. 

A meeting was held in Malacañang on Thursday, March 12, focusing on oil supply and prices ''amidst the volatility we are seeing,” Executive Secretary Ralph Recto said. 

''This is pursuant to the directive of the President to protect our people from the impact of surging oil prices,” Recto said in a press release on Friday.

“And we have been addressing the challenges in multiple fronts, from an energy conservation drive by the government, to providing lifeline subsidies to transport groups,” he added.

Recto also said President Ferdinand ''Bongbong'' Marcos Jr.'s boldest move to cushion oil price shocks was his certification as urgent of the measure giving him powers to temporarily suspend or reduce the excise taxes on petroleum products during economic emergencies.

“The President wants the bill on his desk immediately so he can sign it,” he said.

Meanwhile, Recto said the major issue that must be proactively addressed during a crisis that is very dynamic were the ''supply chain disruptions.”

“Thankfully the companies gave the assurance that whatever operational challenges in bringing the products here are manageable,” Recto said.

He also ensured that oil alternatives are already being explored once the conflict would further choke oil supply.

“This is the kind of oil diplomacy that oil executives and the government will have to jointly undertake,” Recto said.

Energy Secretary Sharon Garin, who also attended the meeting, directed oil companies to ensure that gas stations properly adjust prices through a manner that reflect real market conditions.

She said that any premature, excessive, or unreasonable increase in fuel prices will not be tolerated and will be addressed firmly.

The Middle East conflict started when a joint United States-Israel Operation Epic Fury launched airstrikes targeting Iran’s seat of government last February 27 to supposedly deter Iran’s missile program which threatens the region’s security.

This operation has since killed Iranian leaders and prompted Iran to retaliate by launching airstrikes targeting US bases, among others, located in Middle Eastern countries where the Philippines sources 98% of its crude oil supply. 

Due to this, oil prices have increased by at least P10 per liter this week, with the Department of Energy expecting a P17 to P24 price hike per liter spread within March 10 to 16.—AOL, GMA Integrated News