Department of Energy (DOE) Secretary Sharon Garin clarified that while the government can mandate oil price rollbacks, these are based on global market numbers. Additionally, although oil firms have gained more profit from selling fuel procured at a lower price, they have also had to comply with the ₱20 minimum reduction for oil obtained during the conflict in the Middle East.

In an interview on Dos Por Dos, Garin said the rollback is a “fair assessment” based on calculations made by the agency using international numbers.

Confirming that the government may order decreased fuel prices, she said the amount is determined by the average of five days’ international trading.

“That’s correct. Kaya nga in-announce, e. Kasi ang calculation—ang DOE kasi, very mathematical ‘yung rollback or increase niya at kinukuha ‘yung averaging based on international trading, kung ano ‘yung closing niya every day, ina-average ‘yung limang araw. Five days. And then up and down siya. Kung nag-increase siya compared to last week na average. Then magi-increase siya. So we do that week-on-week,” Garin said.

“Now ang calculation ng DOE, as of last week, was ₱20 ang rollback niya. Kaya nga nag-float ng mga ₱10, ₱8. That was not correct. That’s why it was announced na ₱20 talaga, kasi gano’n talaga ‘yung presyo dapat,” she added.

She said the rollback would have possibly been smaller if the agency and the President had not announced the major rollback after soaring prices.

“Hindi ko rin alam kung sinong nagsabing ₱8 to ₱10, kasi nakita ko na lang sa social media. But yes, I think it was good that the President announced it, kasi naging minimum na siya. Ibang company nga ₱23 ‘yung rollback nila,” she shared.

With the country under a state of energy emergency, the rollback amount the DOE dictates is the minimum reduction to be implemented, and the government-mandated increases are to be adhered to as the maximum amount to impose.

“Diba una nag-ceasefire, and then the market responded… bumaba ‘yung presyo. Tapos nag-announce na naman si Trump, ‘Ib-block ko ‘yung blockade na ‘yan,’ or kung anuman ‘yung sinabi niya. E, mukhang nag-react na naman ‘yung market. Pero yesterday, kung tinanong mo ko, medyo pessimistic ako kasi nakikita ko, umaaakyat. Pero ‘yung result naman today, mukhang nag-stabilize naman siya. So it’s really day in, day out, medyo iba-iba ‘yung reaction nung market,” the Energy secretary said.

“It’s not kung sinong bumibili dito ah, o ilan nakokonsumo natin. Kung ano ‘yung reaction ng international traders, international producers. Kaya, I can’t tell you. I’m hoping that it stays low or it goes lower,” she added.

Some of the existing oil supplies were purchased prior to the Middle East war, Garin believes, and some during it. She said that while oil firms do profit from selling fuel at higher prices during price hikes, they are also required to sell fuel bought at a higher price for lower prices when rollbacks are implemented.

“Reklamo ng mga tao, ‘Nandiyan na ‘yan, ngayon pa lang umakyat, dati mura ‘yung bili, bebenta nila, mahal.’ Tama naman. Kasi gano’n ‘yung accounting nila, e. Ngayon, nakabili sila last week, or two weeks ago, bayad sila ng ₱150 level, halimbawa. Pero ngayon, kasi nag-calculate kami, dapat bumagsak na siya, ₱20 less, loss na nila ‘yun, kasi nagba-balance out na naman ‘yan, e, no? Malas ka kung bumaba ‘yung presyo, pero gano’n talaga ‘yan, e, that’s how we’ve been practicing this,” she said.

That said, she further stressed that oil companies cannot justify keeping prices high during a rollback, as the fuel being sold was acquired at a lower cost.

Furthermore, Garin said that implementing measures such as a price cap may cause companies to refrain from obtaining sufficient supplies.

“Mahirap kasing i-implement ‘yan kasi baka hindi na sila bumili ng sufficient (oil) for our supply. Pag umakyat ‘yung presyo ng ₱150 tapos ina-allow lang natin, ₱100, baka ang bilhin nila, enough for ₱100 ng value. Ang quantity, baka bawasan nila,” she explained.

Garin said the ₱20 rollback will last until Monday, until a new oil price mandate is issued for the next day.

“Mukhang okay naman. I think nakita naman ng mga tao na may at least ₱20 reduction ‘yung diesel kahapon. Hanggang next week ‘yan, hanggang Monday next week,” she told the anchors.