Apart from the adverse impact of the prolonged Covid-19 pandemic, consumers are also reeling from eight consecutive weeks of oil price hikes.
Thus, the Department of Energy (DoE) has asked Congress anew to amend the “outdated” Oil Deregulation Law to unbundle the cost of petroleum retail products in order to determine their real passed-on costs.
In a letter addressed to Committee on Energy chair Senator Sherwin T. Gatchalian and Representative Juan Miguel M. Arroyo, the DoE reiterated that unbundling oil prices would result in greater market transparency.
By establishing the trends in oil prices and finished petroleum products, the DoE said it can ensure a fair playing field within the oil industry while “upholding the best interests of consumers.”
In May 2019, Cusi also issued a department circular (DC2019-05-0008) requiring the unbundling of oil prices for its data gathering and policymaking function.
Opposed by oil industry players, the circular has been subjected to an injunction by a court despite the DoE’s argument that the “unbundling policy” is not violative of the Oil Deregulation Law.
According to Cusi, the DoE has also met with oil industry stakeholders to ensure supply.
Some fuel companies, including Jetti, Seaoil, Shell, Phoenix, Unioil, have agreed to extend discounts to the public transport sector on top of existing discounts like vaccination and loyalty incentives.
As of 16 October, demand stood at 103.22 million barrels a day following the surge of economic activities worldwide. Pre-pandemic, the latest recorded total worldwide supply was, more or less, 104 barrels a day.
The Organization of Petroleum Exporting Countries (OPEC) has committed to increasing the production and supply of crude oil by 400,000 barrels per day. The OPEC will meet on 4 November to discuss and reassess the situation.
Currently, the Philippines utilizes the equivalent of 425,000 barrels/day, which is around 0.4 percent of the world supply.