Gatchalian urges talks with Iran over fuel supply

MANILA, Philippines — Sen. Sherwin Gatchalian yesterday urged the executive department to have high-level talks with Iran for the safe passage of Philippines-bound oil vessels in the Strait of Hormuz.

“The government must stay ahead of the curve. Strategic coordination and swift diplomatic action will go a long way in protecting our energy security and shielding our people from further economic strain,” he said.

“We cannot afford delays or disruptions that will only further burden Filipino consumers already weighed down by rising costs,” Gatchalian added.

In a separate interview with radio dwIZ, he emphasized that lower-level diplomatic talks will no longer suffice in the current energy emergency, urging the administration to leverage the foreign relations Marcos has built over the past three years to secure supply lines.

“Having the discussions at the director or undersecretary level simply won’t suffice. Like what me and Sen. (Kiko) Pangilinan said, (it should be) minister to minister or head of state to head of state,” Gatchalian said.

The Senate finance committee chair pointed out that Thailand successfully navigated the Middle East blockade by directly negotiating with the Iranian government to let its cargo ships pass.

He also revealed that the Philippine Chamber of Commerce and Industry (PCCI) recently received an offer from Uzbekistan for oil priced at a heavily discounted $40 to $50 per barrel.

“We need to use leverage everything, dialogue with Iran, buy cargo with Russia,” he added, noting that these strategies will be formally recommended in the PROTECT committee’s upcoming interim report.

“We are already coming up with a committee report because there is a sense of urgency here,” Gatchalian said.

Profiteering

The senator also addressed allegations of corporate profiteering, agreeing with earlier claims by Sen. Rodante Marcoleta that oil firms might be raking in billions by selling old, cheaper inventory at new, crisis-inflated prices.

Gatchalian explained that oil companies usually hold 15 to 30 days of old stock.

“It’s possible. I have no computations of my own, but in my estimate, that’s possible,” Gatchalian admitted.

He called on the Philippine Competition Commission and the Department of Energy to remain vigilant, noting that the newly passed enrolled bill suspending fuel excise taxes grants the government the power to force oil companies to unbundle and report their pricing formulas.

Oil shipment

Meanwhile, Energy Secretary Sharon Garin promised more incoming oil in the coming days after the first government-procured diesel shipment of 142,000 barrels docked in La Union earlier this week.

Customs Commissioner Ariel Nepomuceno, through a memorandum, ordered all ports to enforce preferential handling, immediate unloading, expedited customs processing, prevention of process delays, interagency coordination and continuous monitoring of all petroleum imports. — Bella Cariaso, Artemio Dumlao