Energy department floats proposal to ‘stagger’ fuel price increases
THE Department of Energy (DoE) said it will propose to oil companies next week a scheme to “stagger” any increases in fuel prices, in order to cushion the blow on consumers.
“We will discuss (staggered increase) with the oil companies… It’s a good idea, but the problem is if prices also increase in the succeeding weeks,” Energy Undersecretary Gerardo D. Erguiza, Jr. said at a virtual briefing on Wednesday.
“If you stagger next week’s hike and pass it on the following week, what if it increases to P4 next?… it might result in a bigger problem… it will hurt the people more,” Mr. Erguiza added.
Energy Secretary Alfonso G. Cusi in an online appearance at the Kapihan sa Manila Bay forum on Wednesday said oil prices will continue to rise over the next few weeks and could go even higher if crude prices hit $120 a barrel.
President Rodrigo R. Duterte has called on Congress to review and amend Republic Act No. 8479, also known as the Downstream Oil Industry Deregulation Act of 1998. The law took pricing power away from the government and let the market determine prices, but the current mood is for the restoration of some government power to stabilize prices when they spike.
In a statement on Thursday, Senate Committee on Energy Chair Sherwin T. Gatchalian said he is open to reviewing the law.
Any such review should “improve transparency among industry players and assess the benefits to our consumers,” he said in a statement sent via Viber.
He added that the main problem is the Philippines’ “over-dependence” on imported fuel. Russia is among its sources for crude, making domestic prices vulnerable to the economic impact of the Russia-Ukraine war.
“As long as we import oil, we will be susceptible to global oil shocks that we have absolutely no control over,” he said.
Pump prices are currently at P60-P83 per liter for gasoline, P52-P65 for diesel, and P61-P68 for kerosene, according to the DoE.
Since the start of the year gasoline, diesel, and kerosene prices per liter have risen by P9.65, P11.65, and P10.30, respectively. Diesel and gasoline prices are projected to hit P68.70 and P78.33 per liter, respectively, if Dubai crude, the benchmark for oil shipped to Asia, hits $120 a barrel. — Marielle C. Lucenio
