PRESIDENTIAL candidate Sen. Panfilo Lacson called on the government to take a “serious look” into the country’s resources to ease the impact of the rising oil prices on the economy.
Lacson issued the call as he expressed concerns over reports that oil is expected to hit $120 per barrel on the world market and will further push prices of diesel and gasoline at an average of P5 and 3.50, respectively, on Tuesday.
He said this would affect not only the transport sector but the power sector as well, citing the fact that oil-based power plants are operating in the country, and will also have a big impact on the costs of basic goods and services.
“So, where do we go (when that happens)? That’s why we need to come up with short-term, medium-term, and long-term (solutions). To me, the long-term (solution) that we need is we should take a serious look at our own resources, the homegrown resources,” Lacson told reporters in a press conference in Mendez, Cavite on Saturday, referring to the alternative sources of energy the country is not maximizing despite their availability, like solar energy and wind energy.
Data from the Department of Energy (DOE), citing 2020 figures, showed that net imported oil covered 28.4 percent of the country’s total primary energy supply mix, 18.6 percent was derived from net imported coal, 0.3 percent came from net imported ethanol, and 52.6 percent or majority were made up of indigenous resources.
In a press statement last Wednesday, the DOE assured that oil supply remains sufficient, but domestic price spikes are inevitable due to upward global market movements driven by the Russian invasion of Ukraine.
Energy Secretary Alfonso Cusi has announced short-term plans to address the impact of fuel price hikes, like extending discounts to the public transport sector and implementing the P2.5-billion “Pantawid Pasada Program” courtesy of the Land Transportation Franchising and Regulatory Board.
There is also a P500-million fuel discount program intended for farmers and fisherfolk through the Department of Agriculture. The DOE likewise promised to strictly monitor activities to ensure sufficient supply of petroleum products and to protect the welfare of consumers.
Part of the long-term measures outlined by the DOE is the suspension of the excise tax on fuel, the establishment of a necessary strategic petroleum reserve infrastructure, provision of intervention powers to the government during periods of oil price hikes, and a strong campaign towards energy efficiency and conservation.
Lacson welcomed these developments, following the recent directives of President Duterte, which reflected his earlier proposals to the government. He said some of these measures were steps toward the right direction.
“We should be ready. First of all, on the steps taken by the President, that’s a good step–it was a proactive approach. He met with the defense personnel and the economic managers plus the private sector. So, they will keep outlining a way forward in case (the Ukraine conflict) escalates further and gets longer,” he said.
