Contingencies should Israel-Iran conflict escalate - Malacañang

Metro Manila, Philippines - The government is taking steps on a number of fronts as it closely monitors the conflict between Israel and Iran, which may impact oil supply and commerce.

In a briefing at Malacañang on Tuesday, June 17, Communications Undersecretary Claire Castro said Energy officer-in-charge Sharon Garin has advised that her agency is in coordination with oil companies on making sure supply is unhampered amid the possibility of price spikes.

“Kung sobra daw talaga ang pagtaas at hindi maiiwasan, makikipag-usap ang DOE (Department of Energy) sa oil companies para ma-maintain ang inventory levels at hangga’t maari ma-spread out ang oil price adjustments,” Castro said in a briefing. “‘Yan po ay siyempre boluntaryo at nasa magandang pakikipag-usap po ‘yan.”

[Translation: If the price spike will be high and could not be avoided, the DOE will talk to companies to maintain their inventory levels, and as much as possible, spread out the oil price adjustments. That will be voluntary and on good talking terms.]

The government hopes that the Strait of Hormuz, which is a strategic sea passage and an important oil chokepoint, will not be closed due to the conflict.

Oil companies are required to have a 30-day fuel inventory, Castro said.

Meanwhile, the release of fuel subsidies to public transport drivers and operators, as well as fisherfolk, may be triggered once oil prices go higher than $80 per barrel based on Dubai crude trade.

Effective Tuesday, oil companies implemented a big-time price hike on fuel products, or P1.80 per liter for gasoline and diesel, and P1.50 per liter for kerosene.

DA ready for alternative sources on fertilizer

Castro also said the Department of Agriculture is ready to tap other exporters of fertilizer if tensions further heightened.

The Philippines gets its nitrogen-based fertilizers, or urea, in Qatar, which is near Iran.

“Kung mangyayari ito, maaaring kumuha sa ibang parte ng mundo na malapit sa atin katulad ng Brunei,” Castro said.

“Nakikita ng DA na hindi ito magdudulot ng pangmatagalang problema lalong lalo kung hindi isasara ang sea lanes,” she said. “Let’s just pray for that.”

[Translation: If Qatar’s exports are affected, we can get fertilizers from nearby countries such as Brunei. The DA sees this will not result in a long-time problem, especially if sea lanes would not be closed. Let’s just pray for that.]