Metro Manila (CNN Philippines, August 4) — A lawmaker seeks to investigate the impact of the war between Ukraine and Russia on the Philippines’ energy security and affordability.
“The increase in domestic pump prices have led jeepney drivers opting not to ply their usual routes, and provincial bus and taxi operating only at 20 to 30 percent capacity which in turn has led to severe lack of available public transportation that can be utilized by the commuting public,” Senator Sherwin Gatchalian said in pushing for the inquiry in his resolution released Thursday.
Some power generation companies have also filed petitions for fuel pass-through with the Energy Regulatory Commission despite fixed price Power Supply Agreements, he added.
A pass-through provision allows fluctuations in fuel prices and foreign exchange rates to be passed on to consumers.
Around six months into the Ukraine-Russia war, the cost of fuel in the Philippines has had weeks of big-time price hikes.
Gatchalian said “the drastic increase in global oil and coal prices have reverberated across the domestic market with local pump prices experiencing consecutive weekly increases, and prices of electricity dependent on coal generation also expected to increase.”
The senator noted soaring cost of international crude oil is reflected in the local market as local pump prices of gasoline increased by 22% to ₱77.71 per liter as of May versus its cost in January 2022. Local pump prices of diesel have also increased 49% to ₱75.92 per liter in the same period, he added.
Global coal prices have increased too in same period by 92% to $428 per metric ton as measured by the Newcastle index, Gatchalian said.
“There is thus a need for Congress to be apprised of the short, medium, and long-term effects and implications of the Russian invasion of Ukraine on the Philippine economy, in particular, the security of the country’s supply of oil, and the effects of the continuously elevated global oil and coal prices on domestic oil and petroleum products as well as power generation from coal-fired power plants,” he said.
Senator Win Gatchalian seeks probe on the impact of the Russian invasion of Ukraine on the Philippines' energy security and affordability @cnnphilippines pic.twitter.com/NyirqgPVSV
— Eimor Santos (@eimorpsantos) August 4, 2022
