Global oil supply stable amid ME crisis – DOE

MANILA, Philippines — The Department of Energy (DOE) has downplayed oil supply risks despite renewed hostilities between the United States and Iran, noting that global markets have adapted to the conflict. 

“I think the international supply chain has already recalibrated. They know where to get their supplies, where crude will come from and where diesel will come from,” Energy Secretary Sharon Garin told reporters yesterday.

As of July 10, the Philippines’ average fuel inventory stood at 47.87 days.

What Garin is more concerned about is the impact of renewed tensions on domestic pump prices, which are vulnerable to geopolitical developments. 

After four trading days, industry estimates point to another hefty fuel price hike next week, with diesel expected to rise by P9.50 to P10.50 per liter and gasoline by P3.50 to P4.50 per liter.

While the estimates are still subject to the final trading day, the projected increases could push both gasoline and diesel prices beyond P100 per liter, widening the gap from their pre-war levels of about P50 to P60 per liter.

The DOE met with oil companies yesterday to discuss measures to cushion the impact of the looming increase in fuel prices. 

A key agenda item was reportedly the reinstatement of stricter fuel pricing rules, with the DOE expected to once again mandate maximum price hikes and minimum rollbacks starting next week.

Jetti Petroleum president Leo Bellas said price increases on July 21 could be the biggest in recent weeks or since Washington and Tehran began their peace talks.