PAP urges full implementation of NatGas law

THE Petroleum Association of the Philippines (PAP) is urging power generation companies to maximize the use of domestic natural gas to help stabilize electricity prices, saying the country still has unused indigenous capacity that could reduce reliance on costly fuel imports.

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“There is an opportunity to fully implement the downstream Natural Gas law by maximizing the use of indigenous gas,” PAP Chairperson Donnabel Kuizon Cruz said during a Senate hearing on Wednesday.

“We still have capacity there that we can use and push into our power generation companies so we can help reduce the price.”

Amid proposals to suspend petroleum taxes in response to Middle East tensions, the group has advocated for the full implementation of Republic Act 12120 or the Philippine Natural Gas Industry Development Act as a long-term safeguard against price volatility. They noted that Section 38 of the law, which exempts the sale of indigenous natural gas and electricity generated from it from VAT, could deliver additional savings for consumers.