SENATE committee on energy chairman Sherwin Gatchalian is calling for an inquiry on the effects of the new coronavirus disease 2019 (COVID-19) pandemic on the upstream, midstream and downstream oil and gas sectors in relation to the country’s energy security.
Gatchalian made this call following reports at least 10 percent or 900 oil stations out of the 9,003 service stations nationwide have suspended operations since the imposition of the enhanced community quarantine (ECQ).
The senator said the overall decrease in energy consumption and the drastic drop in global oil demand due to reduced transport, industrial and commercial activities have also threatened the viability of small and independent retailers which currently account for 41.7 percent of the domestic market.
“Since the country is mainly dependent on imported fuel, Congress has to know about the short, medium, and long-term effects and implications of COVID-19 on the oil and gas industry, in particular, the status of oil and gas exploration projects towards energy security,” Gatchalian said.
He said the pandemic also resulted in the postponement of the opening of proposals to develop potential oil and gas sources due logistical disruptions as plans to drill and explore potential oil and gas sources were put on hold.
Quarantine measures implemented to stop the spread of COVID-19 also caused the delay of the proposed liquified natural gas import projects, which according to the lawmaker, is expected to be finalized by the Department of Energy (DOE) within the year.
Gatchalian also urged the DOE to extend the price freeze on liquefied petroleum gas (LPG) and kerosene products until June to ease the financial burden on consumers.
This was after oil companies raised the price of LPG by more than P5 per kilogram on May 1, which translates to a price increase of P56.98 up to P63.80 for a standard 11-kilogram LPG cylinder in the market.
Authorities say the higher cost of LPG products reflects the movement in the international contract price of LPG in May.
“Having to contend with accumulated utility bills, implementing a price freeze throughout the duration of the quarantine period will go a long way in easing the financial burden of many of our kababayan, especially for those no work, no pay Filipinos. The DOE must recommend extending the price freeze on household LPG and kerosene as soon as possible,” Gatchalian said.
