Marcos declares energy emergency, with only 45 days of supplies
The archipelago is among the countries most exposed to the blockade in the Strait of Hormuz. To cope with the challenge, Manila is seeking supplies of one million barrels per day in the region, and is requesting exemptions to access sanctioned producers. Lorry drivers, commuters, and consumers are staging protests.
Manila (AsiaNews) – Hard hit by restrictions imposed on oil and gas trade and the resulting price increases, the Philippines is taking action, with rising prices and fuel already in short supply across much of the country.
Against the backdrop of the one-year national energy emergency declared yesterday by President Ferdinand Marcos Jr., which is intended to “enable the government to implement responsive and coordinated measures under existing laws to address the risks posed by disruptions in the global energy supply and the domestic economy,” new measures came in effect today to address problems never seen before on this scale in the country.
Existing reserves will be depleted within 45 days unless significant countermeasures are taken, Energy Secretary Sharon Garlin announced.
With the emergency declared, the government has the option of advancing part of the payments for oil and derivatives, thus securing supplies to replenish reserves by one million barrels per day through purchases both in the region and elsewhere.
“We are working with the State Department to get waivers or exemptions to purchase oil from US-sanctioned countries," said Philippine Ambassador in the US Jose Manuel Romualdez, speaking to Reuters.
When asked if Venezuelan and Iranian oil were part of the discussions, Romualdez replied: "All options are being considered."
Furthermore, the presidential measure guarantees the possibility of suspending fuel excise taxes as a stopgap measure. President Marcos had already raised that possibility on 3 March when he suggested requesting special powers to intervene in the event of an oil price increase above US$ 80 a barrel.
Energy uncertainty requires careful consideration of a series of factors, including the impact on the local currency, the Philippine peso, which is at risk of devaluation, this in a country that is both a net energy importer and heavily dependent on the evolving conditions of the countries where millions of Filipinos work (starting with the Gulf countries).
The urgency of acting in a situation threatening to spiral out of control is highlighted by protests planned for today and tomorrow by lorry drivers, commuters, and consumer associations, who are protesting not only soaring prices and reduced fuel availability, but also the lack of official intervention so far.
To support measures to contain the crisis, the Department of Budget and Management has decided to release P20 billion, around US$ 335 million, to the Department of Energy for emergency measures.
Many departments, agencies, and companies have also decided to drastically cut consumption wherever possible, and the national police is following suit.
In terms of mobility, road, sea, and urban transport connections are already contracting, while air transport is at risk from cuts and airport closures, something especially vital to a country with a dense communications network linking its many islands and a large diaspora community.
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21/09/2022
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