The Department of Energy (DOE) is gearing up an oil contingency plan to assure enough fuel supply amid disruptions in the global market.
In a report by The Philippine Star, DOE Oil Industry Management Bureau assistant director Rodelo Romero said that they are working with other government agencies to identify the level of demand requirements of various sectors, including the transport sector, so they could draft the contingency plan.
Romero added that the DOE is organizing a task force to draft the contingency plan that would address internal and external supply disruptions.
Oil prices went up for the seventh straight on Tuesday due to tight global supply. Gasoline prices went up by Php 7.90 per liter, diesel is at Php 10.20 per liter, and Kerosene by Php 9.20 per liter since January.
Romero said that the current Russia-Ukraine conflict, explosion in Nigeria, maintenance and disruption and pipeline leaks in Libya, and the oil spills in Ecuador and Kazakhstan are the contributing factors of the continuous price hike.
The contingency plan will serve as a temporary measure while the department is finalizing its oil stockpiling program or strategic petroleum reserve (SPR) – which looks to reduce price and supply shocks from importing oil.
The SPR aims to establish a government-owned reserve for crude oil, finished petroleum products, and biofuel reserve to strengthen the country’s fuel supply security and address severe international supply interruption and implement the Targeted Fuel Relief Program.
The DOE has also backed the continuous suspension of the excise tax on fuel products to help ease up the rising oil prices.
Romero said in a report by BusinessMirror that the suspension could help the transportation sector – which is currently taking the effects of the oil price hikes.