Oil Crisis Unlikely to End Soon Amid Middle East Tensions, DOE Says

The Department of Energy (DOE) indicated that escalating tensions in the Middle East are likely to prolong the ongoing oil crisis, as crude oil prices continue to surge. Energy Secretary Sharon Garin stated that nearly seven months have passed since the conflict in the Middle East began, and there is no immediate end in sight. "When the war started in the Middle East, the expectation from the DOE side, based on our assessment, was that this would last a long time," Garin said in a press briefing on Tuesday. "Today, based on our assessment, based on what's happening in the Middle East, not only in Iran or the surrounding areas but an increasing area of the Middle East, it does not look like it will end anytime soon," she added. In response to the situation, fuel companies implemented another round of price hikes on Tuesday, September 15. The price of diesel increased by P4.31 per liter, gasoline by P5.68 per liter, and kerosene by P4.62 per liter. "Now you see in the news that the conflicts there have increased even more. That's why [prices] are rising again. Our forecast is that this will continue for a long time," Garin stated. Despite the continuous price increases, the DOE assured the public that the country's fuel supply remains sufficient, with over 50 days' worth of stock. "The average of the whole country is more than 50 days. So we are over and above what is legally required. We have 50 days to replenish what we need," Garin explained. The DOE also confirmed that it has officially certified the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene, following the benchmark price of Dubai crude oil breaching the $99.41-per-barrel level, significantly exceeding the $80-per-barrel threshold set by law. This measure is in accordance with Republic Act No. 12316, signed by President Ferdinand Marcos Jr. in March, which grants him emergency powers to suspend or reduce fuel excise tax rates. Under the law, the suspension or reduction can be implemented for up to three months if the average price of Dubai crude oil reaches or exceeds $80 per barrel for one month. Brent crude prices have been hovering around $102 per barrel. Information Source: GMA Money Philippines