Malacañang yesterday unleashed a number of measures meant to cushion the impact on the economy of the growing tension between Russia and Ukraine, starting with a call on Congress to revisit the Oil Deregulation Law, particularly the provisions giving the government the power to intervene during price hikes amid the rising cost of fuel.
Cabinet Secretary and acting presidential spokesman Karlo Nograles said the government is ready to fully enforce the Price Control Act if prices of oil as well as other commodities like food and other agricultural items go up amid the Russian-Ukrainian row.
President Duterte convened on Tuesday night a special meeting attended by members of the defense and law enforcement cluster, the business sector and the economic team to assess the current situation and the impact of the crisis as well as the solutions available to cushion the possible impact on the Philippines.
Nograles said possible amendments to the Oil Deregulation law is part of the medium-term solutions being pursued by the government.
“We call on Congress to review the Oil Deregulation Law, particularly provisions on unbundling the price, and the inclusion of the minimum inventory requirements in the law, as well as giving the government intervention powers/authority to intervene when there is a spike and/or prolonged increase of prices of oil products,” Nograles said.
The President also approved the acceleration of renewable energy adoption programs including the support investments in utility-scale battery storage to maximize utilization of renewable energy sources, support investments in modern storage facilities for oil and grains to increase within-the-border holding capacity, and empowering of the private sector to help in strategic stockpiling.
In a text message, Secretary Ramon Lopez of the Department of Trade and Industry (DTI) said consumers are urged to practise energy conservation by limiting travel to essential trips.
Lopez added the DTI will help ensure food supply and price stability through lower tariff and easing of non-tariff measures when there is a shortfall in local supply.
He said the DTI will also strengthen the monitoring of compliance to the suggested retail prices of basic and price commodities.
According to Lopez, the agency will continue to promote and facilitate investments in renewable energy and battery storage as well as in bulk storage projects of oil and grains.
Nograles said the other medium-term measures include the building of a strategic petroleum reserve infrastructure, ensuring Minimum Inventory Requirements (MIR), and advocating for energy conservation and efficiency.
Nograles said President Duterte had also directed the Department of Energy (DOE) to continue to monitor the supply and quality of oil products available in the country and to ensure that there will be no short selling of the product.
He said Duterte also approved the P2.5- billion Pantawid Pasada for the public transportation sector and P500-million fuel discount program for farmers and fisherfolks.
The DOE for its part said conservative use of fuel products alongside discount programs for customers are the most immediate solutions seen to arrest the continuing surge on oil prices.
“We are not lacking in supply given that we source our crude oil requirements primarily from the Middle East and finished products from Asia-Pacific. We continue to appeal to everyone to observe energy efficiency and conservation measures during this critical period,” said DOE Secretary Alfonso Cusi, during the virtual Kapihan sa Manila Bay Forum yesterday.
House deputy majority leader Bong Suntay in an interview said suspending the excise tax on fuel is a better move instead of amending the Oil Deregulation Law.
Sunday said oil players may opt not to import fuel products during periods of price freeze as they will be forced to absorb losses.
Suntay who is also an official of CleanFuel and former president of the Independent Philippine Petroleum Companies Association, said the high price of petroleum products has also affected sales volume.
Suntay said even as the National Capital Region downgraded to Alert Level 1, sales volume of Clean Fuel only increased by 6 percent compared to the 18 percent reduction in sales that was experienced when the National Capital Region was under alerts level 2 and 3.
In another briefing, DOE Undersecretary Gerardo Erguiza Jr., assured gasoline supply is good for 49.7 days while diesel is good for 40.2 days.
Erguiza added oil companies assured supply contracts are well covered and no disruption is expected.
The latest average Manila price per liter of gasoline (RON95) is at P65.05, diesel at P57.45 and kerosene at P62.84.
Norgales said the President also approved contingencies to strengthen the agricultural sector and ensure food security by intensifying its programs such as Plant, Plant, Plant Part Two to boost local food production including increasing and maintaining a minimum of 30-day rice buffer stock.
Government is also providing financial aid to rice farmers, providing fertilizer subsidies for farmers as well as distributing discount fuel vouchers for farmers and fishermen, and subsidizing the transportation cost for the delivery of prime commodities from areas with high production to places with limited supply.
Government is also in bilateral talks with fertilizer-producing countries to ensure affordable and available fertilizer supplies.
Nograles said the President also approved recommendations from the Department of Agriculture to improve the research in increasing food production, lower feed prices, and provide logistical support for food mobilization and delivery of agricultural products from areas with high production to places with limited stock.
Vice presidential candidate Senate President Vicente Sotto III yesterday said the President can call for a special session of Congress between today (Thursday, March 3) and before the elections on May 9 but not after June 3 when Congress is on a sine die adjournment.
Sotto said he is in favor either to review or repeal the Oil Deregulation Law, as he recalled that he voted against its passage for fear that government cannot act once prices of oil continues to rise. With Irma Isip, Jed Macapagal and Raymond Africa.
