The Department of Energy (DOE) warned Tuesday the high oil prices will likely continue until the end of the year amid tight global supply and higher demand.
The DOE has already monitored an uptick in world oil prices from Monday to Tuesday equivalent to about P1.50 per liter though the weekly price impact to consumers may still change.
“We expect the supply shortage to last until the end of the year and there is a possibility of easing out of supply in the first quarter of 2022,” Rino Abad, director of the Oil Industry Management Bureau said during the Laging Handa briefing.
Abad said they have coordinated with the Land Transportation Franchising and Regulatory Board (LTFRB) on the possibility of granting cash assistance to the transport sector due to the high oil prices.
Abad said Energy Secretary Alfonso Cusi has directed the bureau to study the grant of cash assistance “If there is no fare hike or the fare hike is insufficient.”
The LTFRB is currently evaluating the pending P3 fare hike petition of transport group Pasang Masda.
He said the cash assistance will be discussed with the Department of Finance and the Department of Budget and Management for the allocation of any available funds but they have to wait for the LTFRB fare hike decision.
Abad also urged consumers to take advantage of the discounts of up to P4 per liter to shield them from the price hikes.
As this developed, DOE is working continuously to respond to the restoration of energy services and assessing damages to areas that have been affected by Tropical Storm Maring.
“The DOE and rest of the Energy family remains on top of the situation, especially in providing the immediate energy needs in the affected areas,” Cusi said.
The DOE said there are sufficient levels of supply and reserves as of 6:00 AM Tuesday with the Luzon grid operating in normal condition.
The agency said diesel power plants (DPPs) in Cagayan such as Balatubat and Minabel have shut down since Monday due to bad weather conditions.
Meanwhile, the Hikdop DPP in Surigao Del Norte is still not operational due to a line fault.
The Calayanand Palanan DPPs were either not operational or on standby due to bad weather conditions or a line fault caused by TS Maring.
Line clearing and restoration are ongoing for DPPs that experienced line faults.
The DOE said there are three transmission lines are unavailable in North Luzon affecting FCF MINERALS and Cagayan Electric Co. I and II.
Based on NEA’s Power Monitoring Report, 34 electric cooperatives were affected in Regions I, II, III, CAR, and Region IV-A.
Two electric cooperatives are still for restoration namely La Union Electric Cooperative and Cagayan Electric Cooperative II.
A party-list legislator on Tuesday meanwhile slammed the Duterte administration for its inaction on the 7th consecutive fuel price hike that “ravages the Filipino people.”
“The Duterte administration is too occupied with plans to remain in power while 7th consecutive fuel price hike has been devastating the lives and livelihood of the Filipino people,” Assistant Minority Leader France Castro said as he urged for the renationalization of Petron and the regulation of the oil industry.
“Diesel has been raised by more than P16 per liter. It is a huge amount for drivers who have been on the ground for several years due to unemployment and aid during the pandemic and for the ordinary Filipino people who will share in the increase in the price of goods for their daily needs,” Castro said in a statement.
Castro, a nominee of ACT Teachers party-list group, added: “For the Duterte administration, their hunger to stay in power is costing millions of Filipinos without food on their plates.”
She said the government, particularly the Department of Energy, should have done something to appease the dismal plight of the Filipino people affected by the pandemic.
“But the Duterte administration chose to abandon its people with regards to the pandemic response and it is again choosing to abandon the people on the serious issue of price hikes especially now that unemployment rates are still at a record high rates and millions of Filipinos are struggling in this never-ending economic and health crisis.” With Maricel V. Cruz