Worst case scenario for PH is if fuel supply ‘runs dry’ —DOE chief

Energy Secretary Sharon Garin on Tuesday said that the Philippines may face a severe fuel shortage in the next few months as a worst-case scenario, should the tensions in the Middle East heighten further. 

During the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) hearing, committee chairman Senator Sherwin Gatchalian asked for contingency plans should the Strait of Hormuz be completely closed and the situation in the Middle East worsen. 

“The worst case is we run dry. This country runs dry,” Garin said.

“Ang good news niyan (the good news) is we have about a month or a month and a half to prepare for this,” she added. 

Garin said that the Philippines is currently looking for other countries that may supply fuel, including the United States and India. 

Earlier this month, Garin assured that the Philippines has sufficient fuel reserves amid public concerns due to price volatility resulting from the Middle East tensions. Back then, she said domestic fuel reserves, including fuel retailers’ stockpile as well as incoming orders already in transit, would be good for the next 50 days.

During the hearing, Garin said that some companies have committed to making more gasoline available, which would increase the country’s supply by 11 more days, while there will be an additional eight days of supply for diesel. 

“[After that], we have to work again for the next batch. We keep on working, kaya walang tigil ang trabaho na ‘to (this job continues),” she added.  

Nevertheless, Garin emphasized that fuel supply still exists, but the more pressing concern would be soaring prices. 

“I do believe that it will not happen… The worst case is the prices will be really high, and we need to be willing to pay for that,” she said. 

Based on recent data by the Department of Energy (DOE), the price adjustment for gasoline was at P8 to P12 per liter, bringing the pump price ranges for RON97 at P87.69 to P112.40 per liter, RON 95 at P83.10 to P109.78 per liter, and RON 91 at P82.60 to P102.50 per liter.

For diesel, the price increase stood at P15 to P18 per liter, bringing its pump price range at P107 to P134.30, while diesel plus price ranges at P114.99 to P144.20 per liter.

Kerosene, on the other hand, went up by P12 to P22 per liter, bringing its pump price range to stand at P111.99 to P165.79 per liter.

Earlier on Tuesday, Senator Loren Legarda criticized Garin for not attending the first half of the hearing. The senator questioned why some government agencies were represented by their own secretaries, but the DOE was not, at least in the morning. 

“‘Pag kayo ay humihingi ng mga budget ninyo, maski overnight, nandyan kayo. Pero ‘pag crisis action plan, marami kayong dahilan. The Senate will not allow that unless you are not admitting that we are in a crisis situation. Then you're lost in translation o nahihibang,” the senator said. 

(When you ask for your budget, you’re here in the Senate until midnight. But when it comes to a crisis action plan, you have many reasons. The Senate will not allow that unless you are not admitting that we are in a crisis situation. Then you're lost in translation.) 

During the hearing, Energy Undersecretary Alessandro Sales claimed that the Philippine National Oil Company (PNOC) could not release and use their funds for the supplemental budget because a congressional approval was needed. 

The Congress is currently in a session break and will resume session on May 4. 

But Legarda insisted that the Senate would not adjourn the session if the DOE just informed them beforehand that a congressional approval is required before the PNOC could use its supplemental budget. 

“That’s unfair. Eh ang Secretary nga ninyo wala dito eh. Kung anong pamumulitika ang ginagawa na naman ng Secretary ninyo,” Legarda said. 

(That’s unfair. Your Secretary isn’t even here. Your Secretary is being involved in some kind of politics.)  —LDF, GMA Integrated News