Doing a fireman’s job

We are bracing again for yet another round of big amounts of increase in the pump prices of gasoline, diesel and other refined oil products taking effect tomorrow. After a few consecutive weeks of price rollback, our domestic refined oil products are on the uptrend anew. Most likely than not, we will be seeing bigger price hikes in the succeeding weeks ahead.

This will likely be the scenario following the announcement last Thursday by major crude oil-producing countries led by Saudi Arabia and Russia to slash their deliveries to the global economy. The biggest cut in supply will come from the Organization of Petroleum Exporting Countries (OPEC+) reducing their crude oil production by two million barrels a day starting next month. This comes at a time the Western allies are trying to cap the oil money flowing into Moscow’s war chest after its invasion of Ukraine last February this year.

This simply means one thing: higher prices are on the way for our country’s imported crude oil requirements. And for us consumers, we are in for price shocks in the weekly adjustments of as much as P6 per liter in diesel price to P4 per liter in gasoline as well as in cooking gas, and other refined oil products.

In an interview while he was in United States (US) on Sept. 23, President Ferdinand “Bongbong” Marcos Jr. (PBBM for short) disclosed the Philippines is eyeing to get its crude oil requirements from Russia. As to how to import Russian oil will be done, remains to be seen. “Now maybe we need to approach Russia, say that maybe they can loosen up and provide us with fuel,” PBBM told Bloomberg interview.

PBBM reiterated this plan during his address at the annual “The President’s Night” of the Manila Overseas Press Club Thursday night at the Hotel Sofitel Philippines. PBBM expressed deep concern on the spillover effects of the Ukraine-Russia conflict now on its eighth month. He disclosed having tackled this with fellow world leaders he had sideline talks with while attending the United Nations General Assembly (UNGA) held in New York. “And I say, ‘Who would have thought that the war in Eastern Europe would affect the Philippines halfway around the world in the gut – in the food supply, fertilizer prices, seedling prices, fuel?’ All of these things, you never imagine that such a thing would happen but here it is and here we are,” the President narrated.

It was in response to MOPC question raised by former Senator Francisco “Kit” Tatad if the country would be ready to take a leadership role in the peacekeeping under an existing foreign policy that the Philippines “is a friend to all, an enemy to none,” Russia included. “The interconnectivity of the global economy was brought home very, very – in a very convincing way by the war in Ukraine,” PBBM elaborated on the question of Tatad who was once the Information Minister during the presidency of his late namesake father.

Tatad who just turned 82 years old last week has been reportedly working behind the scene as PBBM’s consultant cum editor in very important presidential speeches. Tatad is a veteran politician, a prolific writer, and former journalist. He used to write a regular column at The Manila Times until 2019 but stopped after he incurred the ire of former president Rodrigo Duterte whom he claimed clandestinely underwent a surgical procedure abroad.

On personal appeals of ex-president Duterte, President Vladimir Putin of Russia agreed to supply military arms to quell the ISIS-inspired Marawi siege in May 2017. With Putin’s blessing, Russia donated 5,000 Kalashnikov assault rifles, one million rounds of ammunition and other military materiels. Amid Mr. Duterte’s anti-US rhetorics, the Russia donations arrived a week after the military declared victory in the Marawi siege in October 2017.

Ironically, it is now Russia that is currently at war with Ukraine that has been officially acknowledged as an ally of US-led North Atlantic Treaty Organization (NATO). According to the State Department of the US, the Philippines is still among its 18 major non-NATO allies. As far as PBBM is concerned though, the Philippines need not align itself with any of the feuding countries.

“And again, we take a very balanced view because the truth of the matter is we may have to deal with Russia for fuel, for fertilizer. We have to deal – find a way to deal with Ukraine for our feed wheat, our corn importation – all of these things – our livestock importation. All of these things have now become part of the mix that has made really – has made the world situation more volatile and more complex than it was before,” PBBM explained.

“And so it was very, very important for us to find our place now in the world and to define that place and to explain that to the rest of the world, especially our friends but also those who have not been considered as particularly close partners or allies,” PBBM rationalized.

“But we have been able to show that the Philippines is standing on its feet,” PBBM hastily clarified.

The latest presidential pronouncements were seen as latest sign that the incumbent Philippine leader is prioritizing its domestic economic situation over the international campaign to isolate the Russian government for its invasion of Ukraine.

As the concurrent Agriculture Secretary, the President did not mince words to admit the disruptions in the global trading arrangements due to the Ukraine-Russia conflict have been severely displacing our country’s supply situation on very important crops and other food products and several more consumer goods. This is not to mention the falling Philippine peso vis a vis the US dollar that recently plunged to P59 to $1.

This was why PBBM likened his job to a fireman in “putting out fires” to all oil price hikes-related crisis during his first 100 days in office. Obviously, with futility as the country’s latest month’s inflation rate galloped faster and higher. In such a short period of time, the Pulse Asia survey showed significant segment of Pinoys felt that PBBM has fallen short in addressing the inflation problems.