DOE tells oil firms to comply with inventory requirements amid price hikes

Robie de Guzman   •   October 5, 2021   •   363

MANILA, Philippines – The Department of Energy (DOE) on Tuesday directed oil companies to ensure they have enough supply amid rising fuel prices.

In a statement, Energy Secretary Alfonso Cusi reminded oil firms to make sure they comply with the Minimum Inventory Requirements (MIR) amid the global oil supply outlook for the fourth quarter of the year.

“I am directing all oil companies in the country to ensure adequate supply, and come up with plans to mitigate possible price hikes of oil products in the coming months,” he said.

Citing Department Circular No. 2003-01-001, the DOE said that all oil companies and bulk suppliers are required to maintain a minimum inventory equivalent to 15-days worth of petroleum products’ supply, except for liquefied petroleum gas (LPG) which has a minimum inventory at 7 days.

Refiners, meanwhile, are required to maintain MIR equivalent to 30-days worth of supply, consisting of petroleum crude oil and refined petroleum products.

The DOE said that the latest global oil market developments are responsible for looming oil price increases.

It also said that aggressive demand in the fourth quarter is seen to reach as much as 103 million barrels of crude oil per day (mbpd), when supply is currently only at about 103.22 mbpd.

The department also noted the absence of any additional supply from the Organization of the Petroleum Exporting Countries (OPEC).

“From August to December 2021, OPEC will only be enforcing a 400,000 barrel-increase per month, which is, however, expected to even out the supply-demand balance by the end of 2021,” it added.

The DOE also noted geopolitical events that may continue to affect supply while demand is seen to pick up by the fourth quarter of 2021 due to increased economic activity as first world countries continue to post high vaccination rates.

“The DOE will continue to closely monitor global oil supply and price movements,” Cusi said.

 

DOE exploring mangrove’s potential in managing carbon dioxide emissions

Robie de Guzman   •   December 2, 2021

 

MANILA, Philippines – The Department of Energy (DOE) on Thursday said it is looking into the potential of mangrove sequestration in managing carbon dioxide (CO2) emissions from coal-fire power plants as part of the Philippines’ commitment to successfully realize the energy transition without sacrificing energy security.

In a statement, the DOE said Energy Secretary Alfonso Cusi has issued a memorandum directing the Energy Policy and Planning Bureau to examine existing studies, or submit its own study on the “possibility of putting up mangroves for CO2 emission reduction from coal-fired power plants”; and seek technical assistance from development partners for such a study.

“The study, if proven, could help the Philippines in fulfilling the CO2 requirements without sacrificing our goal to achieve energy security given our energy-neutral portfolio,” Cusi said in his memo dated November 24.

With the global community racing to find ways to curb the adverse impact of climate change on the planet, the DOE said mangroves continue to gain scientific interest due to their ability to stockpile significant amounts of carbon in their wood and soil, instead of releasing it back into the atmosphere.

“We recognize the need to attain our energy security in a sustainable manner,” Cusi said.

“However, while there still is a percentage of our power needs that is being provided by coal, we should actively explore the potential of out-of-the-box solutions that could reduce the harmful greenhouse gas emissions of coal plants,” he added.

The Philippines has earlier urged the international community to start implementing actions on the fulfillment of the nations’ commitments and obligations to humanity to save the planet from environmental catastrophe.

Suspension of fuel excise tax, detrimental to economic recovery — DOF

Maris Federez   •   October 28, 2021

 

MANILA, Philippines — The Department of Finance (DOF) expressed before the House Committee on Energy its opposition to the proposed suspension of excise tax on petroleum products.

The DOF warned that suspending the imposition of excise tax on fuel will cost the government about Php131.4 billion in revenue for 2022 which, according to the agency, is detrimental to economic recovery.

“The unrealized public spending and the investments from the foregone revenues will also be detrimental to our economic recovery and long-term growth,” said DOF director Euvimil Nina Asuncion.

Asuncion said that providing a targeted subsidy to the transportation sector will be more equitable than removing all fuel excise taxes which may only subsidize the consumption of higher-income households.

The Department of Energy (DOE), however, estimated suspending the excise tax on petroleum products will lower pump prices by about Php8 to Php10 per liter.

“We specifically proposed the suspension of the excise tax because of the urgency in addressing the plight our kababayans,” said DOE Secretary Alfonso Cusi.

House Committee on Energy chairperson Representative Juan Miguel Arroyo confirmed that he will push for the amendment of oil deregulation law and the suspension of the imposition of excise tax on fuel products. —/mbmf (from the report of UNTV Correspondent Nel Maribojoc)

House panel supports DOE’s appeal to amend oil deregulation law

Maris Federez   •   October 25, 2021

MANILA, Philippines — The House Committee on Energy supports the suggestion of the Department of Energy (DOE) to amend the oil deregulation law.

The DOE believes that amending the law is the only solution to curb the consecutive increases in the price of petroleum products.

The panel also wants the government to closely look into the reasons for the price hikes being implemented by oil companies.

It also wants the government to be given the power to solve such price hikes.

House Committee on Energy chairman Representative Juan Miguel Macapagal Arroyo said oil companies should not use the oil deregulation law as a blanket authority to increase the price of their products at the expense of the consumers.

“I welcome the proposal of the DOE to amend the Oil Deregulation Law after oil prices escalated over the past eight weeks. As chairman of the House Committee on Energy, I have long pushed for a special mechanism to prevent overpricing in emergency situations,” Arroyo said.

“The Oil Deregulation Law does not give oil companies blanket authority to take advantage of consumers,” he added.

Bayan Muna Partylist Representative Carlos Zarate, meanwhile, urged the DOE to support House Bill 4711 which aims to amend the said law.

“We now challenge Department of Energy Sec. Alfonso Cusi to ask Pres. Duterte to certify House Bill 4711 to again regulate the downstream oil industry as well as the unbundling of oil prices that we called to be done since 2018,” Zarate said.

In an interview, Cusi said that he had already written the Department of Finance to suspend the imposition of the excise tax on petroleum products.

The House panel said it will set a hearing on the said amendment and would invite representatives from the DOE and the DOF. —/mbmf (from the report of UNTV Correspondent Nel Maribojoc)

REACH US

The Philippine Broadcast Hub

UNTV, 915 Barangay Philam,

EDSA, Quezon City M.M. 1104

(+632) 8396-8688 (Tel)

info@untv-newsandrescue.com (General inquiries)

ABOUT UNTV

UNTV is a major TV broadcast network with 24-hour programming. An Ultra High Frequency station with strong brand content that appeal to everyone, UNTV is one of the most trusted and successful Philippine networks that guarantees wholesome and quality viewing experience.