Domestic oil prices will decline by nearly PHP17 per liter effective Tuesday, Nov. 10, following a similar trend in the international market.
Data released by the Department of Energy (DOE) on Monday showed a rollback of PHP16.80 per liter for gasoline, PHP4.10 per liter for diesel, and PHP3.70 per liter for kerosene, from Nov. 10 to 16.
This is the second consecutive reduction in diesel prices, but a turn-around for both gasoline and kerosene.
DOE’s Oil Industry Management Bureau (OIMB), in a news release, traced the drop in oil prices to “growing expectations of a possible diplomatic resolution to the US–Iran conflict, which has eased fears of further disruptions to oil supplies from the Middle East.”
“Ongoing mediation efforts by Qatar, coupled with recent political developments in the United States, have strengthened market expectations of reduced military escalation. These developments have lowered the geopolitical risk premium previously reflected in international oil prices, contributing to the sharp decline,” the DOE said.
DOE Undersecretary Alessandro Sales, in an online briefing Monday, said domestic supply remains adequate.
Gasoline supply remains adequate for 51.64 days, diesel, 53.95 days; kerosene, 143.07 days; jet fuel, 55.62 days; fuel oil, 55.97 days; and liquefied petroleum gas (LPG), 29.84 days.
Sales said the Philippine National Oil Company (PNOC) is firm for the achievement of the Strategic Petroleum Program, which is aimed to ensure available domestic fuel supply amidst any crisis overseas.
He said PNOC aims to have the first 1 million barrel storage facility, composed of six large tanks, in its industrial park in Bataan.
“The target is to build the first 180,000 barrels before the end of 2027. It’s a long process. In the meantime, DOE and PNOC will also invest in other ways to ensure our supply,” he said.
Meanwhile, Energy Secretary Sharon Garin, during the same briefing, urged the public to help in electricity conservation amid a longer dry spell, which is expected to persist until mid-2027.
“The impact of El Niño, (in) our estimate, is (a reduction of) about 60 percent, at least, in the generation of our hydropower plants. And then there’s a 20 percent reduction on solar, and possible disruption to some of our plants because of the heat,” she said.
This will go alongside the uptick in consumption, she said.
“For every degree of increase in heat, there will be a 100 megawatts increase (in demand). So, our supply will go down, but our demand will increase,” she said.
Garin said various measures are now being implemented to boost capacity, and one of these is the fast-tracking of 200 projects scheduled to go online or start construction within the Marcos administration.
She said 55 of these projects are already operating, and more will go online by next year.
She also said major facilities delivering basic social services, such as hospitals and clinics, are now required to have their own backup power source, or generators, that are functioning.
“If we want to be a strong family that can continue to provide services to hospitals and facilities, we need to be able to provide assistance to each. And every family, every household, every kitchen, and every business can do a lot. Every kilowatt hour we save is one less kilowatt-hour that has to be generated,” she added.*PNA
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