President Duterte last week convened military and other high-ranking officials for a special meeting on the potential impact of the Ukraine-Russia conflict on the country, particularly on fuel prices. But instead of immediate solutions to stop the sustained increase in pump prices of petroleum products, what emerged were courses of action that will take years to implement, save for the P2.5-billion Pantawid Pasada program and a P500-million fuel discount for farmers and fisherfolk recommended by the Department of Energy (DOE).
The highlight of what acting presidential spokesperson Karlo Nograles announced was Malacañang’s appeal to Congress to review certain aspects of the oil deregulation law, “particularly provisions on unbundling the price, and the inclusion of the minimum inventory requirements in the law, as well as giving the government intervention powers to intervene when there is a spike and/or prolonged increase of prices of oil products.”
Pandemic-weary consumers have since the start of the year been grappling with rising oil costs. Threats of a continuous spike linger as analysts warned of petroleum supply disruptions following the attacks of Russia, a top oil-exporting nation, against Ukraine. This week, local pump prices are projected to increase by P3 a liter. It will be the 10th consecutive week of price hikes. Since January, the net cumulative increase has reached an average of P11 a liter of diesel, gasoline, and kerosene. Transport groups have asked for a fare increase to help public utility drivers recover part of the increased cost of fuel. Prices of basic commodities are also expected to rise as rising fuel prices push production costs higher.
When asked if Congress could still tackle the review of the oil deregulation law when the campaign period already started for the May national elections, Senate President Tito Sotto said Mr. Duterte would have to call for a special session. Congress adjourned last Feb. 4 and will resume on May 23, or after the May 9 national and local elections. Malacañang has so far been silent on whether the President is inclined to do so.
The day after the Palace meeting on the as the country’s economic managers meet today to discuss rising fuel prices, it is hoped that the government could come up with measures to help alleviate troubled consumers’ plight now.-Russia conflict, Malacañang released a copy of an executive order to include nuclear power in the country’s energy mix, a controversial move that generated opposition the day it was announced. The Feb. 28 order, made public on Thursday last week, can be a major milestone for an economy that suffers seasonal power outages and high electricity prices. Signed in the twilight of Mr. Duterte’s term, the order directs an inter-agency panel to look into reopening the Bataan Nuclear Power Plant (BNPP), the mothballed edifice that had long symbolized corruption during the Marcos dictatorship.
Energy Secretary Alfonso Cusi has long supported nuclear power and says it can help alleviate energy supply issues and high costs. In a press briefing last week, Energy Assistant Secretary Gerardo Erguiza also argues that new technologies have made nuclear a safer source of energy. But a new regulatory framework must be crafted, he said, to make investments in nuclear power more feasible and attractive to both the government and the private sector. However, even with a new framework, he said the earliest possible use of nuclear power may not be until 2027.
It is disappointing that instead of implementing courses of action with the immediate effect of mitigating the impact of surging fuel prices, the government chose to act on measures that will require years to bear fruit for consumers. It should have called for emergency measures that are doable right now. Suspending the excise on petroleum products is one measure with the immediate effect of lowering pump prices of fuel.
For consumers, energy conservation is the way to go now. The DOE can reiterate its appeal made two years ago after tensions in the Middle East escalated again.: [We] emphasize the urgency of fully implementing energy conservation and efficiency programs … In this regard, we continue to appeal to the public to adopt an energy-efficient lifestyle, and explore measures such as carpooling, walking to short distances or using energy-efficient appliances.” As tens of thousands of workers troop back to their workplaces under alert level 1, these measures will help ease the burden brought by rising fuel prices on ordinary consumers.
The review of the oil deregulation law to empower the government to meddle in pricing and supply of petroleum products to protect consumers from unnecessary spikes in fuel prices, and the inclusion of nuclear power in the energy mix to hopefully bring down electricity prices are laudable efforts many years down the road and these are best tackled by the administration to be elected this May. Meantime, as the country’s economic managers meet today to discuss rising fuel prices, it is hoped that the government could come up with measures to help alleviate troubled consumers’ plight now.