300,000 barrels of diesel arriving next week amid fuel crisis

National

FACING a tightening global oil supply, the government has arranged the delivery of 300,000 barrels of diesel next week, seeking to avert shortages as prices continue to climb.

The Department of Energy (DOE) said the shipment was procured by the Philippine National Oil Co. (PNOC) from a Southeast Asian supplier that Energy Secretary Sharon Garin declined to identify. The purchase is meant to help stabilize domestic fuel availability, with current inventories projected to last only until the end of April.

PNOC will resell the diesel to oil companies at cost, allowing industry players to draw from the supply while using their own storage and distribution systems. The government will focus on financing the fuel and tapping private sector logistics to ease handling.

“Whoever has space for storage, (PNOC) will accommodate,” Garin said in a Philstar report, noting the arrangement addresses the absence of state-run fuel storage facilities since the oil deregulation law took effect nearly three decades ago.

Even with the additional supply, demand continues to outpace available reserves. The country consumes about one million barrels of fuel every five days, underscoring the limited impact of the shipment.

To prepare for possible shortfalls, the DOE is exploring additional sourcing options, including discussions with China and Russia. Garin recently met with Chinese Ambassador Jing Quan to discuss cooperation in the energy sector. She stressed that ensuring supply remains the priority, warning that disruptions would affect transportation and the delivery of goods nationwide.

Fuel prices have already surged past P100 per liter for diesel, with further increases expected next week.

Industry estimates point to a possible hike of P14 to P14.50 per liter for diesel and P7 to P7.50 for gasoline, driven by concerns over supply tightening and damage to energy infrastructure in the Middle East.

Garin cautioned that fuel reserves could run out earlier than projected if demand continues to spike or if hoarding persists, as recent consumption has exceeded historical patterns.

“That’s why we ask for no hoarding and no profiteering. Let’s conserve fuel so that we can be sure we have enough for our basic necessities,” she said in the same report.

Business groups urged the government to reallocate spending to cushion the impact of rising fuel costs.

Philippine Chamber of Commerce and Industry president Perry Ferrer noted that suspending excise taxes alone would have limited effect on rising fuel costs. He urged the government to review budget programs and identify areas where spending could be deferred or reallocated to help absorb the impact of price shocks on businesses and consumers.

The Department of Trade and Industry also called on the public to refrain from panic buying, warning that hoarding could create artificial shortages of essential goods. Authorities are actively monitoring prices and investigating reports of profiteering to ensure supply stability.

President Ferdinand Marcos Jr. reassured the public that the country’s food supply remains adequate, emphasizing that manufacturers have committed to maintaining current prices. He said the government expects price stability to continue in the near term, giving households confidence that essential goods will remain available even amid rising fuel costs.(MyTVCebu)