Manila: The Department of Energy (DOE) is proposing to import biofuel to help contain the surge in oil prices on the back of supply issues due to the ongoing conflict in the Middle East. Energy Secretary Sharon Garin, during a Senate hearing on Wednesday, clarified that the DOE is not proposing any change in the blend of domestic fuel products since the law prohibits this.
According to Philippines News Agency, the proposal is to permit importation when the price exceeds 5 percent of pure fuel, with the restriction lasting for a maximum of one year. Secretary Garin expressed hope that the duration would be shorter. Under Republic Act 9367, also known as the Biofuels Act of 2006, importation is only sanctioned after the local supply has been fully exhausted.
Garin explained that the domestic fuel supply is presently adequate but only until the end of April this year. She noted that the DOE is in constant communication with stakeholders to ensure the sufficiency of the domestic oil supply. However, she acknowledged the persistent risk due to developments in the Strait of Hormuz, a critical passageway for oil shipments from the Middle East to other regions.
The ongoing situation in the Middle East has led to increased insurance and transportation costs for fuel. Secretary Garin elaborated that the DOE's proposal aims to extend fuel supply by incorporating more biofuels into the Philippines' energy mix, potentially extending the supply for an additional 10 percent of the time if necessary. She also mentioned that the increase in fuel prices is inevitable, but introducing more biofuel, especially in gasoline, could help temper the sharp rise.
DOE officials have been advocating for measures to cushion the impact of the Middle Eastern conflict on local supply and oil prices. They have advised the public to conserve electricity and consider carpooling to reduce fuel demand.