Oil supply falls down
MANILA, Philippines—Due to the government’s fuel price freeze, oil firms that do not refine crude have stopped importation of gasoline, thus, making the country’s inventory of finished petroleum products to drop.
“Don’t panic. Government will not allow shortages. We don’t even have to talk about contingencies because we’re not in a problem situation yet,” Energy Secretary Angelo T. Reyes Monday assured the public.
In a conversation with oil companies, transport groups and the energy department, Reyes said the average inventory for the year was usually at least 21 days for finished products (gasoline, diesel and kerosene, liquefied petroleum gas and bunker fuel).
Only Petron Corp. and Pilipinas Shell Petroleum Corp. refine crude oil in the country into gasoline, diesel and other petroleum products.
Executive Order No. 839 has frozen fuel prices in Luzon at their Oct. 15 levels due to the calamities happened in the country and has been in effect since Oct. 24 which gave a big blow to smaller oil firms to withhold oil importation.
Pilipinas Shell and Petron said they could not cover the supply shortfall should other companies stop selling due to their non-importation.
At the dialogue, oil companies sought for the lifting of EO 839, saying that this merely resulted in supply disruptions and huge financial losses.
The First National Petroleum Retailers Association, which represents the dealers of the three major oil companies, joined oil firms in asking for the immediate lifting of the prize freeze, if so, firms may have to raise prices by P4 to P5 a liter, in two or three installments.
But some are skeptical about the oil shortage, saying that the oil firms only threaten the government to lift the executive order and impose a higher price.
Photo and news via Inquirer.net
