Oil companies have announced more than a peso rollback in diesel this week while oil prices in the US have turned negative as US crude oil dropped to -38 dollars per barrel. Busy gasoline stations have also cut operating hours due to a drop in the number of customers.
The world oil market continues to weaken as well. The drop in the oil prices has been attributed to an oversupply with traders scurrying to get rid of excess oil as they run out of space due to a drop in demand.
Amid the dip in oil price, National Economic and Development Authority (NEDA) Acting Secretary Karl Chua said “we don’t suffer” as the country is an importer. “Actually, we benefit from this lower oil price but as you know, it does signal it is really very weak in the whole world. That’s why prices fell.”
The Department of Energy (DOE) explained that as an oil importing country, the Philippines can buy oil at a reasonable price due to low demand but added the benefit may only be for a short term.
“Unang-una sa suplay wala tayong concern unless maprolong masyado to the extent na ma-bankrupt na itong mga oil companies (First of all, we don’t have a concern on supply unless it gets prolonged to the extent of bankruptcy among oil companies),” DOE Oil Industry Management Bureau Dir. Rino Abad enlightened.
Latest data from the DOE show the country has 59.3 days of combined oil inventory which is more than the 30-day inventory requirement. The energy department said the Philippine National Oil Company is in the process of a feasibility study to craft a stockpiling program before submitting budgetary requirements to Congress. Additional oil stocks will help the country with extra oil supply despite any triggers to world oil prices and supplies. ##
Report from Naomi Tiburcio
