THE Department of Energy (DOE) will revisit its fuel price cap policy after oil companies raised concerns over mandatory price adjustments, saying this may affect the viability of a deregulated market.
‘We are already looking at the pricing mechanism we have adopted when we prescribed the price adjustments. It was based on the reported calculations also of the oil companies. Now, we are reviewing our current policy on easing up on the strict rules of the DOE,’ said Energy Secretary Sharon Garin.
The policy was an offshoot of the energy emergency declaration under EO 110, which triggered additional powers for government to prescribe the price. The energy chief, however, clarified that the government is setting a limit on minimum rollback and a cap on the maximum price increase to prevent profiteering, among others.
Oil companies announced on Monday a P2.80 to P2.82 per liter increase in diesel and P1.20 to P1.21 per liter hike in gasoline. Kerosene prices, meanwhile, went down by P2.21 per liter. The fuel price hike, which took effect on Tuesday, is aligned with the DOE’s estimates for the week.
‘For the past four weeks, the DOE has prescribed the adjustments, meaning if there’s an increase, we prescribe the maximum increase, and not allowing increases that are more than the maximum that we prescribed. On the rollbacks, it would be the minimum, the smallest rollback that they can have more, but it cannot be less than the rollback that we prescribed,’ added the energy chief.
Garin recognized the concerns of the oil companies, saying they each have different suppliers for petroleum and freight, as well as different computations on premium charges.
‘We have started talks about this already since last weekend, and we are still reviewing the submissions of the oil companies and making sure that there is no profiteering,’ Garin commented.
Oil companies adjust their prices every week to reflect movements in the world oil market.
As of May 15, the DOE reported that the country’s fuel inventory is good for 45 days. Of which, diesel supply will last for 46 days; gasoline, 45; kerosene,152; jet fuel, 59; fuel oil, 50; and liquefied petroleum gas (LPG), 30 days. ‘The average as of this week is lower than the previous week, but this is not an alarming state. It is just because we are assured of supply from other countries. So, DOE remains vigilant about our supply and closely monitoring the activities of our oil companies. The DOE is ready to procure more once the level is, let’s say, not comfortable anymore,’ added Garin.
Meanwhile, the DOE reported that there are at least 938 service stations that are implementing the P10-per-liter fuel subsidy program for eligible public utility jeepney and UV Express drivers.
Of the number, Luzon accounts for 616 stations, the Visayas has 172 stations, while Mindnaao has 150 stations. ‘Every driver who depends on the road to earn a living deserves a fuel station nearby that can serve them under this program. Under the directive of President Marcos, we are working hard to make sure that happens,’ Garin said. ‘Through this initiative, we are helping ensure that energy remains an enabler of livelihood and mobility, not a burden.’
As part of the Unified Package for Livelihoods, Industry, Food, and Transport (Uplift) Program, the FSP provides eligible beneficiaries with up to P1,500 per vehicle per week for three months. This is part of the government’s targeted response to global oil market volatility, following the declaration of a State of National Energy Emergency under Executive Order 110.
The DOE reminded the service stations to comply with all operational, technical, and reporting requirements. Fuel stations that fail to comply may face suspension or cancellation of their Certificate of Compliance. Drivers and commuters may access the complete and regularly updated list of participating fuel stations through the DOE official website.