Marcos says Philippine oil supply has been secured for more than 45 days

By Erika Mae P. Sinaking, A reporter

PRESIDENT Ferdinand R. Marcos, Jr. he said the Philippines has received enough fuel to last more than 45 days despite the disruption caused by the war in the Middle East, as the government tries to mobilize other areas to ensure that existing contracts are fulfilled.

Speaking on Wednesday, Mr. Marcos said authorities quickly confirmed that deliveries under previously signed contracts continue to reach the country, as uncertainty initially halted communication with oil suppliers.

“In the beginning, our suppliers couldn’t even tell us what was happening, and they couldn’t give us prices,” he told a briefing broadcast live in Filipino from the presidential palace. “But with constant engagement and new initiatives, the supply has continued to come in.”

Global oil markets have been rocked by rising tensions in the Middle East, a key supply region, fueling concerns about shortages and high prices in oil-importing countries such as the Philippines. The country is almost entirely dependent on imported fuel products.

Mr. Marcos said the government does not rely only on traditional suppliers in the region. Officials have been reaching out to other sources unaffected by the conflict, although they cautioned that it is too early to say whether new contracts have been finalized.

“It would be premature to say that everything has been completed. But things are starting to open up,” he said. “I am very confident when I say that we have suf.”ffast delivery.”

The Department of Energy (DoE) on Tuesday said the Philippines has a limited amount of fuel equivalent to a 45-day supply, although the levels vary by product.

Mr. Marcos expressed confidence that more supplies will arrive before stocks drop, ensuring a continuous flow rather than a single delivery.

“We can be sure that after 45 days, we will have oil arriving here in the Philippines,” he said. “Not just one delivery, not just two deliveries, but the flow of petroleum and petroleum related products.”

Mr. Marcos praised the country’s relations for helping to secure continued access to fuel, saying good relations with partner countries played a major role. role in keeping supply lines open.

The authorities, he said, will continue to evaluate new relief measures while monitoring global developments, as electricity prices remain vulnerable to political shocks.

He and Energy Secretary Sharon S. Garin previously said the country is talking with China, Russia, the US, South American countries, Brunei, South Korea, Japan and India, among others, about oil supply, noting that the talks are yielding good results.

As a net consumer of oil, the Philippines is highly vulnerable to global oil supply disruptions and price volatility. It imports almost all of its crude oil from the Middle East, with Saudi Arabia as its main supplier.

At the same time, the Department of Budget and Management (DBM) approved the release of P20 billion to the DoE for fuel in the country.

These funds were released on March 24 through the Special Allotment Release Order (SARO) and the Notice of Cash Allocation (NCA), which was received from the Malampaya Gas Fund under the Special Account in the General Fund (SAGF), said the DBM in a statement.

The P20 billion will fund “the purchase of fuel products – including diesel, gasoline, and petroleum gas (LPG) – to increase the national supply of fuel, stabilize pump prices, and ensure uninterrupted operations in all sectors of transport, transportation, agriculture, emergency response and other critical sectors.”

It will be used by the Philippine National Oil Company-Exploration Corporation, which has already started procurement.

‘DO NOT FEAR’
On Tuesday evening, Mr. Marcos placed the country under a state of national emergency under Executive Order (EO) No. 110, noting the ongoing threat of war to the country’s electricity supply. The order will be effective for one year.

The President on Wednesday explained that the announcement is only a “precautionary tool” and that only the energy sector is covered by the state of emergency.

“I want to assure everyone that this does not mean that we should panic. It means that we are doing our best to check and reduce the situation,” said Mr. Marcos.

Under the EO, the President created the Joint Committee on Livelihoods, Industries, Food, and Transportation (UPLIFT) to respond in a systematic way to stabilize fuel supply, stabilize the economy and protect sectors most exposed to rising electricity costs.

The EO also allows authorities to focus interventions on ensuring adequate energy supply and reducing price increases while mobilizing public resources more.fseriously.

“The source of the problem is the supply and price of energy, and that’s what we need to address directly… The reason I declared an energy emergency is to provide the government with more options if the need arises,” said Mr. Marcos.

Transport workers are planning a two-day strike starting on Thursday to protest the rise in oil prices and demand an increase in fares, a move rejected by Mr. Marcos last week.

They also want him to reduce or stop the tax on fuel products to reduce oil prices.

Mr. Marcos on Wednesday signed into law Republic Act No. 12316, which is a measure that gives him the power to temporarily suspend or reduce excise duties on petroleum products to reduce the impact of rising oil prices worldwide.

When asked if the government will control the oil industry, the President said he hopes that this situation will not require action.

“We don’t want to get into that conversation,” said Mr. Marcos told reporters and declined to answer follow-up questions.

Jay M. Layug, former energy undersecretary and executive board member of the Philippine Energy Research and Policy Institute, echoed the President’s words.

“There is no need to regulate the oil companies,” he said in a Viber message.

“What the government needs to do is to implement more measures to control fuel demand and save energy consumption. For example, the expansion of the coding system, car pooling, the expanded WFH (work from home) program, the expanded EV (electric vehicle) program, etc.”

The government has already approved a four-day working week in the governmentfsnow to reduce energy consumption.

Gasoline prices rose again this week, extending their longest increase in recent years.

Noel M. Baga, convener of the Center for Energy Research and Policy think tank, said the announcement was late, noting that legal instruments are already in place and that recent price increases and public service shutdowns highlight the urgency of stronger measures.

“Every power generation project in the pipeline must be accelerated,” said Mr. Baga. “The declaration of emergency shows that the government has finally taken it as a problem. The next step to be serious is whether the price drop will follow.”

DISPOSAL OF INFRA
Meanwhile, the DBM said it has released R16.5 billion to the Department of Public Works and Highways (DPWH) in an effort to accelerate the use of infrastructure and support economic growth.

Funds will be released through the issuance of an NCA at the DPWH Head Office and will be used to pay the compensation of accounts payable to the department and in urgent need.

“By order of the President, we are accelerating infrastructure spending to keep projects going and the economy growing. This release of P16.5 billion ensures that obligations are paid on time,” said Budget Secretary Rolando U. Toledo in a statement.