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MANILA, Philippines — Energy Secretary Sharon Garin warned that a potential fuel supply shortfall poses a greater risk than rising pump prices as tensions in the Middle East continue to disrupt global oil markets.
In an interview with ANC on Saturday, March 21, Garin said the Philippines has sufficient fuel supply for April but stressed the government's focus is on preventing a worst-case scenario of depletion.
"Worst case really is we won't have enough, or we won't have any," she said.
Garin said the government is exploring alternative sources to sustain oil imports amid uncertainty in global supply.
"Kaya we are reaching out to all countries, alternative countries even to make sure na merong darating because the uncertainty of the war makes us uncertain," she said.
(That is why we are reaching out to all countries, even alternative ones, to ensure that shipments will arrive, because the uncertainty of the war makes our situation uncertain.)
"Baka pag nag-prolong 'to, more and more countries will close down, we won’t export na," she added.
(If this gets prolonged, more and more countries might close down and stop exporting.)
Since tensions escalated on February 28, the government has said the country has about 50 to 60 days of supply.
The risk of disruption stems from shipping constraints in the Strait of Hormuz, a key route for about 20% of the world's oil supply. This resulted in an increase in price of crude oil. Some gasoline stations are selling diesel and other products worth more than P100 per liter.
Supply over price
Garin said ensuring fuel availability is more critical than managing price increases.
She warned that a supply disruption could halt public transportation and affect air and sea travel, as well as the delivery of goods.
"Mas mahirap 'yung walang wala tayong diesel kaysa sa meron tayo pero mahal. If we don't have any diesel or any oil, for example, our public transportation won't go. Our sea, air transport will be affected. Wala na silang mga gamit na na fuel," she said.
(It is more difficult if we have no diesel at all than if we have a supply that is expensive. If we don't have any diesel or any oil, for example, our public transportation won't operate. Our sea and air transport will be affected. They will no longer have the fuel they need.)
"We need fuel. We're so dependent on fuel. That's a lesson learned," she added.
Contingency measures
Garin said the Philippine National Oil Corporation is evaluating multiple offers to lock in reserves.
The government does not normally purchase its own fuel reserves, relying instead on private companies to maintain a mandatory 15-day replenishment cycle.
Now, however, said the government is considering securing one million to two million barrels of oil as a contingency supply.
"I can share with you is that we have offers. We are receiving multiple offers actually," she said.
Garin acknowledged that these supplies come at a higher cost but said the government is willing to pay a premium to ensure fuel availability.
"For the country, the government is willing to pay whatever premium just to make sure that we keep on having the basic needs on fuel for our consumers," she said.
Impact on transport sector. Rising fuel prices have already affected the transport sector, with some groups planning to suspend operations.
"Talagang hindi namin kakayanin na. Kaya kami sa Lunes, magta-transport holiday kami nationwide," Alliance of Concerned Transport Organization president Libay de Luna said in a dzBB interview on Sunday, March 22.
(We really will not be able to handle it anymore. That is why this Monday, we will hold a nationwide transport holiday.)
Transport group PISTON earlier staged a strike on March 19 and 20 to protest fuel price increases.
