Metro Manila, Philippines – The Marcos administration is backing efforts both from fuel companies and national government agencies to secure oil supply amid the ongoing conflict in the Middle East, Executive Secretary Ralph Recto said Sunday, March 29.
In a statement, Recto said the synergy of public-private efforts to guarantee energy security is “bearing fruit” following the impact of the Middle East crisis on the country.
Recto cited the pledge of Petron Corp., the Philippines’ largest oil company and operator of the country’s only refinery, to secure both traditional and alternative sources to stabilize local supply.
“The quick landing here of Russian oil is agility exemplified during these uncertain times,” he said.
Malacañang earlier confirmed that a ship carrying more than 700,000 barrels of crude oil from Russia arrived in the Philippines. Petron was reportedly listed as the consignee.
Recto also said that Energy Secretary Sharon Garin and other officials have obtained 1.04 million barrels of diesel. The first shipment of around 142,000 barrels was delivered on March 26.
He also said that Indonesia committed an “ironclad guarantee” of coal supply.
“The news that new wells of Malampaya will go on stream by the last quarter of this year further boosts our energy security,” Recto said.
“Believing that these gains will be sustained, we fully back the efforts of Petron, SEAOIL, other oil companies, the DOE (Department of Energy), and PNOC (Philippine National Oil Company) to keep the supply lines flowing so the economy is powered up, the country running, and our lives minimally disrupted,” he said.
Recto said the government is stepping up fuel discount programs for public transport drivers, promising continued fuel subsidies for farmers and fisherfolk, and revitalizing a bureaucracy-wide energy conservation program.
Recto also said that with the new law empowering the President to cut or suspend the excise tax on petroleum products, Congress has added an instrument to blunt the impact of rising prices.
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Gov’t urged to engage with Iran
On Saturday, Sen. Sherwin Gatchalian urged the government to talk with Iran for the safe transit of Philippine-bound oil vessels.
In a statement, Gatchalian said the government must stay ahead of the curve as the surge in fuel prices continues to cause significant disruptions in the country.
“I strongly urge the executive department to engage in high-level discussions with Iran to secure safe passage of Philippine-bound oil vessels through the Strait of Hormuz and ensure they are recognized as neutral entities,” he said.
“Strategic coordination and swift diplomatic action will go a long way in protecting our energy security and shielding our people from further economic strain,” the senator said.
Renationalize Petron?
Meanwhile, the Makabayan bloc asked the leadership of the House of Representatives to fast-track their bill seeking to renationalize Petron.
The bloc, consisting of ACT Teachers Rep. Antonio Tinio, Gabriela Rep. Sarah Elago, and Kabataan Rep. Renee Co, said the proposal was an “urgent and long-term response to runaway oil prices, oil cartel abuse, and the continuing failure of privatization and deregulation to protect Filipino consumers and the national interest.”
Following the deregulation of the local oil industry, Petron was privatized starting in 1994. San Miguel Corp. (SMC), one of the largest and most diversified conglomerates in the country, acquired majority control of the oil firm by 2010.
Speaking to reporters recently, Ramon Ang said SMC is open to selling Petron to the government if it believes it can run it better.
Ang, the SMC chairman and CEO, said they will not take advantage of the fuel crisis and were willing to even lower their income.
