DOE prepares counter measures vs rising oil prices
The Philippine Star
06/13/2006
The Department of Energy (DOE) has assured that appropriate counter measures will be implemented by the government to curtail the possible adverse impact of rising oil prices on the economy.
Energy Secretary Raphael P.M. Lotilla admitted that the continuing increase in oil prices could have an impact on the prices of other goods and services.
"We are very much concerned about the streak of price increases of oil in the global market and its impact on the domestic market and we assure the public that we are continuously working closely with other government agencies as well as with the private sector to counter inflation concerns," Lotilla said.
On the weekly increase of petroleum prices, the energy chief said the DOE is coordinating with the Department of Trade and Industry (DTI) to ensure that prices of basic commodities will remain stable as oil represents only less than 10 percent of the total cost of production.
"We note the continued cooperation and sensitivity of the private sector especially the manufacturing sector in the midst of soaring oil prices and we continue to appeal to them to soften the impact of price increases," he said.
The price of oil continues to rise in the global market due to several factors, including the tension between US and Iran, war in Nigeria, and huge oil usage in China and India.
The benchmark Dubai average price for the month of June is now at $65.91 per barrel compared to $65 per barrel in May.
While the average price of Mean of Platts Singapore (MOPS)-based unleaded gasoline has gone down by $ 2.10 from $86.80 per barrel in May to $84.70 per barrel in June, average price of MOPS-based diesel for June is now at $88.14 per barrel compared to $87.53 per barrel in May.
Oil companies have said they would need to recover another P1 to P2 per liter in the next few weeks due to the continuing rise in crude prices.
Meanwhile, the government has also reduced tariffs on petroleum products based on certain triggers indexed to oil prices in the world market to soften the impact of rising world oil prices on the economy and on consumers, without necessarily sacrificing government revenues.
The DOE, together with the Bureau of Customs, Department of Finance and the oil companies are now working on the mechanism to implement the pump price reduction resulting from the tariff reduction to benefit the riding public especially the transport sector.
"We assure the public that the corresponding tariff reduction will be accordingly reflected in the pump prices of diesel fuel the soonest possible time to help mitigate the inflationary impact of rising oil prices in the world market," he said.
He said the oil companies have likewise heeded the call of the government for an increase in the number of their stations offering P1.00 discount to jeepney drivers nationwide.
To reduce our dependence on imported oil, the government has pushed for the expansion of refinery capacity in coco-biodiesel and local production of bio-ethanol.
The DOE also anticipates the passage in Congress soon of bills calling for the mandatory mix of biofuels.
"The government is working closely with the private sector and the oil companies to help mitigate the inflationary impact of rising oil prices in the world market," he said.
06/13/2006
The Department of Energy (DOE) has assured that appropriate counter measures will be implemented by the government to curtail the possible adverse impact of rising oil prices on the economy.
Energy Secretary Raphael P.M. Lotilla admitted that the continuing increase in oil prices could have an impact on the prices of other goods and services.
"We are very much concerned about the streak of price increases of oil in the global market and its impact on the domestic market and we assure the public that we are continuously working closely with other government agencies as well as with the private sector to counter inflation concerns," Lotilla said.
On the weekly increase of petroleum prices, the energy chief said the DOE is coordinating with the Department of Trade and Industry (DTI) to ensure that prices of basic commodities will remain stable as oil represents only less than 10 percent of the total cost of production.
"We note the continued cooperation and sensitivity of the private sector especially the manufacturing sector in the midst of soaring oil prices and we continue to appeal to them to soften the impact of price increases," he said.
The price of oil continues to rise in the global market due to several factors, including the tension between US and Iran, war in Nigeria, and huge oil usage in China and India.
The benchmark Dubai average price for the month of June is now at $65.91 per barrel compared to $65 per barrel in May.
While the average price of Mean of Platts Singapore (MOPS)-based unleaded gasoline has gone down by $ 2.10 from $86.80 per barrel in May to $84.70 per barrel in June, average price of MOPS-based diesel for June is now at $88.14 per barrel compared to $87.53 per barrel in May.
Oil companies have said they would need to recover another P1 to P2 per liter in the next few weeks due to the continuing rise in crude prices.
Meanwhile, the government has also reduced tariffs on petroleum products based on certain triggers indexed to oil prices in the world market to soften the impact of rising world oil prices on the economy and on consumers, without necessarily sacrificing government revenues.
The DOE, together with the Bureau of Customs, Department of Finance and the oil companies are now working on the mechanism to implement the pump price reduction resulting from the tariff reduction to benefit the riding public especially the transport sector.
"We assure the public that the corresponding tariff reduction will be accordingly reflected in the pump prices of diesel fuel the soonest possible time to help mitigate the inflationary impact of rising oil prices in the world market," he said.
He said the oil companies have likewise heeded the call of the government for an increase in the number of their stations offering P1.00 discount to jeepney drivers nationwide.
To reduce our dependence on imported oil, the government has pushed for the expansion of refinery capacity in coco-biodiesel and local production of bio-ethanol.
The DOE also anticipates the passage in Congress soon of bills calling for the mandatory mix of biofuels.
"The government is working closely with the private sector and the oil companies to help mitigate the inflationary impact of rising oil prices in the world market," he said.
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