Marcos orders oil contingencies

PHILIPPINE President Ferdinand R. Marcos, Jr. has ordered agencies to prepare for potential spikes in global oil prices amid worsening tensions in the Middle East, a major oil-producing region, the presidential palace said on Tuesday.

- By Chloe Mari A. Hufana Reporter

Beyond fuel subsidies, the government is considering additional aid packages should prices surge, Palace Press Officer Clarissa A. Castro told a news briefing.

She said Mr. Marcos has directed the Department of Energy (DoE) to talk to oil companies to ensure adequate stockpiles and stagger fuel price adjustments to soften the impact on consumers.

While the war with Israel has yet to hit Iran’s crude oil production and export facilities, Brent futures have risen almost 6% due to heightened risks since the close on June 12 to trade around $73.58 a barrel in Asia on Tuesday, Reuters reported. (Related story on SI/10.)

Oil firms in the Philippines are mandated to maintain a minimum 30-day fuel inventory to help stabilize local supply. Should global crude prices breach the $80 per barrel threshold, fuel subsidies for public transport drivers and fisherfolk will be automatically triggered, Ms. Castro added.

Motorists faced another round of fuel price hikes this week, as oil companies announced increases on Monday, marking the fifth consecutive week of gains for gasoline, the third for diesel, and the second for kerosene.