MANILA, Philippines — Domestic pump prices could jump sharply again after Iran declared the full closure of the Strait of Hormuz following renewed US military strikes, according to the Department of Energy (DOE).
Iran’s joint military operational command announced yesterday that the waterway was closed to all vessels, including oil tankers and commercial ships and warned that any traffic would be targeted.
The headquarters said the move was due to escalating regional insecurity, which Iranian officials blame on continued US military actions.
“Anything that happens there (the Middle East) affects prices. If there is a declaration, there will be an immediate market reaction,” Energy Secretary Sharon Garin said in an interview yesterday.
But beyond price movements, Garin said she is more concerned about the country’s fuel stockpiles, even if the current buffer continues to be sufficient.
She noted that many suppliers still source petroleum products from the Middle East, where shipments pass through the strait, which once carried about 20 percent of global oil and gas supplies.
“That means we’re still not out of the crisis,” the energy chief stressed, adding that consumers have also reverted to old habits and are no longer conserving fuel.
While the government remains confident in supply stability, Garin warned that any extended disruption could strain stockpiles. “If this is prolonged, I don’t know how long everybody can sustain.”
As of June 5, the Philippines’ average fuel inventory stood at 47.09 days, according to DOE data.
Jetti Petroleum president Leo Bellas said recent developments in the Middle East have fueled worries over potential severe supply disruptions.
“Unless diplomatic efforts prevail and the crisis de-escalates, prices will likely go higher,” Bellas added.
Last Tuesday, motorists faced another round of steep increases, with pump prices rising by as much as P8.10 per liter.
Fuel pricing rules began to ease this week, with the DOE shifting from fixed pump adjustments to a pricing range instead.
However, amid the threat of another fuel price spike, Garin said the DOE may be compelled to reimpose stricter pricing guidelines. “We will have to restrict the increases again.”