By Joann Villanueva
MANILA – The Department of Energy (DOE) is proposing to import biofuel to help contain the surge in oil prices on the back of supply issues due to the ongoing conflict in the Middle East.
Energy Secretary Sharon Garin, during a Senate hearing on Wednesday, clarified that the DOE is not proposing any change in the blend of domestic fuel products since the law prohibits this.
“The proposal is (to) allow it (importation) when the price is more than 5 percent of the pure fuel, pure gas, only to maximum of one year. Hopefully it will be shorter,” she said.
Under Republic Act 9367, otherwise known as the Biofuels Act of 2006, importation is allowed only after the local supply has been fully exhausted
Garin explained that, to date, the domestic fuel supply is adequate but only until the end of April this year.
She said the DOE is in constant talks with all stakeholders to ensure that the domestic oil supply remains enough.
She, however, pointed out that “there will always be a risk” given the developments in the Strait of Hormuz, where most oil supply from the Middle East is shipped through going to other areas.
She said because of the situation in the Middle East, both the insurance and transportation costs for fuel transportation have gone up.
“So, on the supply side, Madam Chair, what we are attempting with this proposal is, if anything happens, we can extend by adding more biofuels coming in the Philippines… If it’s 10 percent or 20 percent, at least we can extend it for 10 percent more of the time,” she said.
“And then on the price point currently, it’s inevitable the price of fuel, the pump price, will go up. One possibility that we could also temper that sharp increase is having more biofuel, especially on gas, not on diesel, but on gas,” she said.
DOE officials have been proposing several measures to help cushion the impact of the ongoing conflict in the Middle East on domestic supply and oil prices.
Among others, it has advised the public to help conserve electricity and carpool if possible to lessen demand for fuel. (PNA)
