MANILA – Oil industry leaders have assured the Philippine government that the country will continue to have sufficient fuel supply despite fluctuations in global oil markets.
The commitment was made during a meeting held Thursday at Malacañang Palace between oil executives and top government officials to discuss supply stability and guard against excessive fuel price increases.
Executive Secretary Ralph Recto, who headed the government panel alongside Energy Secretary Sharon Garin, described the meeting as constructive.
According to Recto, the discussions centered on ensuring steady fuel supply and maintaining price stability despite the volatility affecting global oil markets.
He said the meeting followed instructions from President Ferdinand R. Marcos Jr. to implement measures that would cushion the impact of rising fuel prices on the public.
The President has already certified as urgent a bill that would allow the temporary suspension or reduction of excise taxes on petroleum products during times of economic emergency.
Recto said the administration is eager to see the measure passed so the President can sign it into law.
Aside from possible tax relief, the government is also planning initiatives such as promoting energy conservation and providing financial assistance to public transport groups facing higher fuel costs.
Officials likewise tackled the possibility of supply chain disruptions stemming from geopolitical tensions in oil-producing regions.
Recto said oil companies assured the government that current logistical challenges in delivering petroleum products to the Philippines are still manageable.
However, he noted that authorities are exploring alternative sources of fuel supply should conflicts abroad further restrict global oil production.
“This situation calls for close coordination between the government and oil companies to address supply chain risks in a fast-changing environment,” Recto said.
Garin also reminded oil firms that adjustments in pump prices must correspond to actual movements in the global market. She cautioned that unjustified price hikes would face government action.
Meanwhile, Senate Minority Leader Alan Peter Cayetano said the President’s decision to certify the House bill as urgent demonstrates the government’s readiness to act swiftly when international developments drive oil prices higher.
He noted that the proposed legislation aims to cushion the effect of rising fuel costs on Filipino consumers.
House Bill 8418 would allow the President to suspend or reduce excise taxes on fuel products for a period of up to six months, with the authority remaining in effect until Dec. 31, 2028.
A separate proposal in the Senate seeks to automatically trigger a temporary reduction or suspension of fuel excise taxes once global oil prices reach a specified level.
The measure proposes amendments to Section 148 of the National Internal Revenue Code of 1997, as amended by the Tax Reform for Acceleration and Inclusion Law.
Under the proposal, the President may issue an executive order to suspend or reduce excise taxes if the average price of Dubai crude oil reaches USD80 per barrel for one month, based on the Mean of Platts Singapore and upon recommendation from the Development Budget Coordination Committee.
The tax relief would automatically end once global oil prices fall below the set threshold.
elamigo/xf
