The Department of Energy (DOE) is set to hold meetings with oil companies this week to revisit and possibly reform the country’s fuel pricing system, following a recent drop in global fuel prices.
In an interview with DZRH Dos Por Dos on Wednesday, June 25, DOE Officer-in-Charge Sharon Garin said the meetings, scheduled until Friday, aim to explore more flexible pricing arrangements that would better reflect real-time changes in the international oil market.
“Kailangan kausapin namin para palitan ‘yung system, we will attempt kasi kapag bumaba din kasi nag-a-adjust din sila,” Garin said, emphasizing possibly shift to a more responsive adjustment period.
“Kahapon bumaba na and then ngayon bumaba pa lalo. P69 yata kahapon, P68, P67 ngayon ibig sabihin noong dati mataas iyan P70, ngayon pababa nang pababa mula nang mag-ceasefire sila,” Garin explained, referring to the recent ceasefire in the Middle East that contributed to the drop in world oil prices.
Currently, oil prices in the Philippines are adjusted weekly based on the previous week’s global prices.
Garin noted that this method, while predictable, does not always favor the consumers or oil companies.
“Ang adjustments natin hindi daily, weekly ‘yan. Ngayong linggo P5 ang adjustment, iyan ang average increase based on the prices last week” she explained.
She further said that while the current weekly system allows households and public utility vehicle (PUV) drivers to prepare for price changes especially over the weekend, a more flexible schedule may be necessary.
“Weekly ‘yan. Pwede namang daily at monthly. Ang agreement noong dating secretary ay every Tuesday weekly na kasi I think ang consideration doon ay at least bago ang adjustments, makapagpa-gas na ang mga pamilya o mga jeep bago mag-adjust ng pataas before Tuesday, so may weekend sila,” Garin explained.
“Mahirap kasi pag daily, hindi mo alam kung ano ang mangyayari na adjustments. Monthly naman baka sobrang laki naman... so we have to check if willing sila for this time na apat na araw muna instead na weekly, ” she added.
Garin also stressed the need to shield low-income commuters and transport workers from drastic price swings.
“‘Yung gusto natin maproteksyunan especially ‘yung mga sumasakay sa jeep natin na PUV,” she pointed out.
She also commended oil companies for cooperating with the DOE in lessening the burden of price hikes.
“Maganda ‘yung bayanihan ng oil companies kasi pumayag sila sa staggering. Imbes na maningil sila ng 4 pesos agad, 5 pesos, 2.60 lang muna ang sisingilin nila sa akyat. So magandang response na iyon ng oil companies,” he said.
“Tapos ngayon may mga oil companies na nagbibigay ng discount—piso sa kada-litro—sa mga jeep natin para rin matulungan. So ibig sabihin nun, konti na lang increase ng mga jeep natin sa gasolina. Maganda naman ‘yung tulong ng mga oil companies natin.”
On pricing transparency, Garin clarified that oil pricing is not solely based on the purchase cost of previous shipments.
“As a oil [company], kahit na delivered ‘yan hindi ibig sabihin naka-agree na kayo sa presyo... kasi depende ‘yan sa presyo na agreement niyo kapag nakonsumo na siya. So hindi siya ganun na practice ng industry.”
Pushing independent energy
The DOE is also doubling down on its long-term goal of energy independence amid ongoing global geopolitical risks.
“Ito pong Middle East conflict, it reminds us everyone na kailangan talaga independent tayo. Kailangan talaga may sarili tayong source—source of power, source of fuel,” Garin said.
She cited the government’s ongoing efforts to tap indigenous fuel sources and expand renewable energy projects, such as those underway in Malampaya and elsewhere.
“This is how we become independent kahit anong mangyari sa Middle East, sa Ukraine o kahit saan man. Kasi apektado talaga tayo—hindi natin kontrolado,” she claimed.
