DOE, oil firms agree to staggered fuel price hikes; subsidies eyed

The Department of Energy (DOE) announced on Monday, June 23, that the government has reached an agreement with oil companies for the staggered implementation of domestic petroleum price adjustments.

- By GABRIELL CHRISTEL GALANG and ARGYLL CYRUS GEDUCOS

In a statement, DOE officer-in-charge Sharon S. Garin said this measure was taken in response to rising global oil prices driven by geopolitical tensions between Iran and Israel and overall market volatility.

On Monday, Garin and Energy Undersecretary Alessandro O. Sales met representatives from Petron, Shell Pilipinas, Caltex, Jetti Petroleum, PetroGazz, Phoenix, PTT, Seaoil, Total, Unioil, Filpride, and CleanFuel.

According to Garin, the oil companies "have responded positively to our [DOE] request." Garin explained that the proposed staggered approach aims to ease the burden of potential larger price adjustments in the domestic market, particularly on the transport and agriculture sectors, by distributing price movements over a more manageable period, thereby cushioning the impact on Filipino consumers.

The scheduled big-time price adjustments for this week will instead be implemented on a staggered basis.

Oil companies are required to submit their implementation scheme, including the breakdown of the staggered adjustments, to the DOE no later than 6 p.m. Monday.

Marcos acts to cushion impact of conflict In view of the Israel-Iran conflict, President Marcos has called for a high-level meeting with his economic team to prepare for possible repercussions of rising Middle East tensions, including the Iranian Parliament's approval to close the Strait of Hormuz-a critical global oil chokepoint-amid escalating conflict with Israel and the United States.

The meeting comes as global oil prices hover near $80 per barrel following reports of the US bombing three nuclear sites in Iran.