Connect with us

Hi, what are you looking for?

Economy

DoE wants oil deregulation law amended

Global oil prices have spiked in recent weeks due to lack of supply and strong demand as more countries reopened. — PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Energy (DoE) on Tuesday urged Congress to amend the oil deregulation law, saying the country is now facing a “prolonged oil price spike” due to high global demand and tight supply.

“It is respectfully prayed that Congress amend the Oil Regulation Law, among others, to provide a framework for the government to intervene and address sudden prolonged oil price spikes; require the unbundling of the cost of retail products to determine their true and the passed-on cost,” Energy Secretary Alfonso G. Cusi said in separate letters sent to Sen. Sherwin T. Gatchalian and Pampanga Rep. Juan Miguel M. Arroyo.

Copies of the letters sent to the heads of the Senate and House committees on energy were provided by the DoE.

Pump prices have increased for the eighth straight week. Local oil firms on Monday raised gasoline prices by P1.8 per liter (/L), and increased diesel and kerosene prices by P1.5/L and P1.3/L, respectively.

Mr. Cusi attributed the sudden global demand for oil to the surge in economic activities as more countries have contained the coronavirus disease 2019 (COVID-19) outbreak; production slowed down; increased stockpiling ahead of winter; and international sanctions on oil-rich nations such as Iran and Venezuela.

He said global demand stood at 103.22 million barrels per day (bpd) versus the supply of 100.32 million bpd as of Oct. 16.

The Energy chief estimated that the country consumes 425,000 bpd, which is equivalent to around 0.4% of global supply.

To address the impact of the soaring oil prices on consumers, Mr. Cusi said the DoE has asked industry stakeholders to extend discounts to the public transport operators, and revisited previous platforms on subsidy.

He said the DoE has an existing circular, issued in 2019, wherein oil firms are required to unbundle the cost of petroleum retail products to determine if these can be lowered. However, some oil companies opposed the circular and were able to secure restraining orders for its implementation.

In a separate statement, the DoE said that the unbundling of oil prices will contribute to its goal of establishing price trends for oil and finished petroleum products.

It added this will ensure a “level playing field” among oil industry participants while upholding the best interests of consumers. — AYY

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...

Economy

By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...

Economy

SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...

Economy

By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...

Economy

BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...

Economy

THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.