Gov't to sell P80/liter diesel to power off-grid communities

The government has approved the sale of diesel at P80 per liter to help sustain electricity supply in areas not connected to the main power grid, the Department of Energy (DOE) said.

In a statement issued May 11, the DOE said up to 45 million liters of diesel procured by the Philippine National Oil Company-Exploration Corporation will be sold over the next three months to support uninterrupted power generation in missionary and off-grid areas.

“Under the government’s Emergency Energy Security Program, PNOC-EC will sell up to 45 million liters of diesel over the next three months to new power providers (NPPs) and microgrid system providers (MGSPs) operating in missionary areas,” the DOE said.

The agency said the measure aims to sustain power generation, prevent outages, and shield consumers from sharp increases in electricity costs.

The initiative forms part of President Ferdinand Marcos Jr.’s directive under Executive Order No. 110 and the UPLIFT framework, which seeks to provide reliable and affordable electricity to provinces and island communities that continue to rely on diesel-powered generators.

The government adopted the UPLIFT strategy after Marcos declared a state of national energy emergency in March.

According to the DOE, the program seeks to stabilize electricity supply in provinces and island areas such as Mindoro, Marinduque, Romblon, Palawan, Catanduanes, Masbate, and Siquijor, which still largely depend on diesel generation.

“By supporting the fuel requirements of off-grid power providers, we are helping sustain reliable and affordable electricity service for remote and island communities that depend on diesel-fueled generation,” said DOE Secretary Sharon Garin.

As of April 27, the country’s diesel buffer stock under the DOE’s Emergency Energy Security Program had reached 178.33 million liters.

The DOE added that all four contracted diesel shipments have arrived and were distributed to storage facilities in Batangas, Subic, and Davao City.

The deliveries began on March 26 with a shipment from Japan carrying 22.66 million liters, or 142,531.23 barrels, that docked in Batangas.

Two succeeding deliveries arrived in Subic with 52.41 million liters (329,650 barrels) and 50.81 million liters (319,576 barrels), respectively, while the final shipment of 52.45 million liters (329,918 barrels) was delivered to Davao City. —MCG, GMA News