The Manila Times
(UPDATE) ABOUT 329,000 barrels, or 52.311 million liters, of diesel from Malaysia have been delivered to the Philippines, augmenting the country’s fuel supply amid volatility in the global oil market driven by the war in the Middle East. The latest arrival of state-procured diesel followed the first delivery of 142,000 barrels, or 22.578 million liters, from Japan on March 26, in line with President Ferdinand Marcos Jr.’s directive to ensure a stable and sufficient oil supply amid heightened external market uncertainty. News of the shipment comes as oil industry sources said diesel and gasoline prices are expected to go down next week as a result of a ceasefire in the Middle East. They said diesel, which has hit historic highs after the war began on Feb. 28, is expected to decline by P8.80 to P10.80 per liter, while gasoline is expected to fall by P1.50 a liter. These estimates are based on the five-day trading of Mean of Platts, Singapore, the pricing basis of refined goods in Southeast Asia. Energy security In a statement, the Department of Energy (DOE) said the latest delivery of diesel was part of ongoing efforts to strengthen the country’s fuel supply under the Emergency Energy Security Program. “With the arrival of the Malaysia shipment, the government continues to strengthen domestic supply buffers as global oil markets remain exposed to geopolitical risks linked to ongoing developments in the Middle East,” the DOE said. On March 26, 7,000 barrels of crude oil from Russia, a non-traditional trading partner, arrived in the country through the Sierra Leone-flagged carrier Sara Sky. The DOE said the deliveries are the result of “sustained government action and close coordination across relevant agencies to translate strategic supply planning into actual fuel arrivals that can support the country’s energy requirements in the weeks ahead.” Energy Secretary Sharon Garin said the second shipment’s arrival to the country reflects the continuing efforts of the national government in staying ahead of “possible supply pressures” and preserving domestic fuel availability. “This latest shipment from Malaysia further strengthens our supply position at a time when external risks remain and the situation in the Middle East continues to evolve,” Garin said in a statement. “The government is taking deliberate and forward-looking steps to build up available supply, support essential sectors, and help ensure that the country remains prepared for possible disruptions in the global oil market,” she added. The Energy Department also said it will keep pursuing all the necessary measures, which include close coordination with government entities and industry stakeholders, as well as monitoring inventory levels, facilitating incoming distribution of incoming fuel volumes, and preventing supply bottlenecks that may affect transport, logistics, power generation, and other vital economic activities. It also said that the country, as a net importer of petroleum products, remains “vulnerable to external developments that may affect both price and supply.” “In response, the government continues to move with urgency and discipline to reinforce fuel availability, maintain orderly market conditions, and safeguard consumer welfare,” the DOE said. The shipment is part of the DOE’s broader target of 318 million liters of diesel, which the agency expects to arrive in the coming weeks. Legislation proposed Meanwhile, the House of Representatives aims to file a package of measures to address rising fuel costs when Congress resumes on May 4. In an interview, Marikina City Rep. Romero Quimbo, House Ways and Means Committee chairman and House Legislative Energy Action Development (LEAD) Council presiding officer, said lawmakers are working through the congressional break to ensure that the measures will be in place once session resumes. He added that the planned legislation will tackle both immediate relief from the oil price shock and structural reforms to reduce the country’s vulnerability to global price swings. The House, Quimbo said, has been holding extended and back-to-back hearings, even during the session break, to speed up the process and deliver results. Among the reforms being considered are incentives to promote cleaner and more sustainable transport, including support for electric vehicles and related industries through a new program that would promote electric vehicle use. He said that the goal is to create a policy environment that would encourage private sector investment in emerging industries such as electric vehicles, battery production and other alternatives to fossil fuels. Quimbo also said that the panel is set to invite oil companies to explain why their prices move in the same manner, even in a deregulated market. This comes after the council learned from Socioeconomic Planning Secretary Arsenio Balisacan that the weekly pricing system may be encouraging “cartelization” in a market controlled by only a few big players and called for a look into the system by the oil players. Under the current system, oil firms adjust prices every Tuesday based on global trends from the previous week. Companies often announce the same price changes ahead of time, allowing others to match them. Quimbo said that the dominance of a few big companies makes the situation worse. “The players are few. There are many players but many of them are small players. We only have three big players, and they are the ones dominating it, Quimbo said. Mamamayang Liberal Party-list Rep. Leila de Lima agreed with the call of Balisacan, who called for an investigation with the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC). “It would be a grave injustice if, while our countrymen are already suffering, some continue to take advantage of this crisis,” de Lima said. “We are in a situation where consumers are paying today's high prices for yesterday's cheaper fuel. It is a disservice if the government has no clear mechanism to ensure fairness," she added. Electric vehicles In the Senate, Sen. Pia Cayetano and the DOE underscored the urgent need to accelerate electric transport solutions. The push came during the launch of the Iwas Taas Pamasahe E-Transport Solution Program, a private sector-led initiative deploying locally assembled electric buses nationwide to provide affordable and sustainable mobility. Cayetano, who chairs the Senate Committee on Energy, expressed concern over rising transport costs driven by geopolitical tensions in West Asia, which continue to disrupt global oil markets. She emphasized the need to reduce dependence on imported fuel and strengthen energy security through sustainable transport systems. “We must insulate our drivers, operators and commuters from the impact of global fuel volatility,” Cayetano said, stressing the link between energy resilience and transport reform. Also, as chairman of the Senate Committee on Sustainable Development Goals (SDGs), Innovation, and Futures Thinking, Cayetano highlighted the importance of building safe, accessible and affordable transport systems. She called for stronger collaboration among national and local governments, the private sector, and communities to scale green investments. “Innovation cannot rest on government alone,” she said, advocating a whole-of-nation approach to sustainable development. The DOE welcomed the program, describing it as a timely intervention to address rising fuel costs while advancing the country’s transition to energy-secure mobility. Garin said expanding electric transport offers a practical response for a country heavily reliant on imported fuel. “This initiative shows that we can protect commuters from rising fuel costs while advancing a cleaner and more sustainable transport system,” Garin said. Also over the weekend, Sen. Rodante Marcoleta has renewed calls for transparency in fuel pricing, questioning the DOE and oil companies over their inventory practices and the timing of price increases. In his radio program on NET 25, Marcoleta raised concerns on Friday about the absence of verification or response from both the DOE and petroleum companies regarding the data he presented. He highlighted the availability of potentially cheaper crude oil in Singapore. WITH PNA
Go to News Site