"We are thinking of lowering the minimum level of oil inventory. We will be meeting with the official of the oil companies and announce the new level," Energy Secretary Vincent S. Perez said.
He said the price of Dubai crude started to drop when US president George W. Bush announced his decision to attack Iraq if President Saddam Hussein will not leave his country on or before Thursday.
From the day of Bush’s announcement, the Dubai crude fell from $29.53 per barrel to $28.14 per barrel the next day. Yesterday, he said Dubai crude, a benchmark for local oil pricing, dropped to $25.98 per barrel.
"We do not want the oil firms to be tied to this inventory level while prices are going down. They should unload the products that were bought at higher prices and buy the available and cheaper products," he said.
But Perez said they will still have to watch the market very carefully before making any decision on amending the present rules.
At the onset of the Middle East’s tension, the DOE issued a circular ordering all oil refiners to keep an in-country inventory of not lower than 30-days and for small oil players of 15-days inventory.
The energy chief noted that the Philippines remains the cheapest in terms of diesel pricing in the region at P16.48 per liter compared to Thailand’s P19.04, Cambodia’s P24.11, HongKong’s P44.69, Singapore’s P21.16, Australia’s P25.47 and New Zealand’s P22.89.
At the same time, he said he expects domestic oil prices to remain at current levels because of recent developments.
"We are hoping that local oil products will be flat and stay at its current level in the next few days," he said.
Meanwhile, Perez, as a member of the task force for the country’s Oil Contingency Plan (OCP), has assured the public that the Philippines has enough supply of oil.