AN OFFICIAL at the Department of Energy (DOE) said the Philippines should veer away from fuel imports to bring down oil prices in the long-term.
The country should start developing or exploring its indigenous oil and gas supply, suggested Rino Abad, director of DOE’s Oil Industry Management Bureau.
“Ang pinamalaking magandang gawin ay of course pababain kasi 100 percent tayong nag-i-import. The problem with this, we are only importing around 300,000 barrels oil equivalent,” Abad said in a televised briefing on Tuesday, Aug. 22.
He added: “It is not even 1 percent global demand of around 104 million barrels per day. Napakahina ng ating bargaining power to purchase petroleum products in the global market.”
“Ang pinakamagandang chances talaga natin in the coming years ay ibaba ang ating pagiging import dependent… May mga agreements na tayo,” he said.
Abad hailed the petroleum contracts in the West Philippine Sea and the Bangsamoro region despite “challenges.”
Because it takes around 10 to 15 years to develop fuel, the official stressed that it was important to start these oil exploration projects now.
“It just takes time. Kailangan ma-explore average of five to 10 years kasi ang exploration. Magde-develop ka pa ng additional five years bago ka dumating sa production,” he said.
“We have to go to that direction,” he said.
To lower the dependency of the transport sector on fuel, which consume around 60 to 70 percent of the country’s oil products, Abad said it was also important that vehicles shift to electric.
The Philippines must reduce fossil-based vehicles, he said.
“We can do a transition-type of vehicle, ‘yung hybrid muna, bago tayo dumating doon sa pure electric vehicle. We are doing also the same thing in consonance sa ating plano na exploration of indigenous supply of oil and gas,” he said.
Abad said the DOE targets to attain “more than 50 percent” of renewable energy share in the country’s power sector, based on the draft Philippine Energy Plan.
Fuel prices surged again on Tuesday, with gasoline getting more expensive by P1.10 per liter.
Since July 10, the string of fuel price hikes has already totaled P12.50 per liter for diesel, P8.85 for gasoline and P11.85 for kerosene.
However, year to date the net increases total to P14.50 per liter for gasoline, P8.80 for diesel, and P5.84 for kerosene.
Abad said the spike in fuel prices could be attributed to the “imbalance” of the global production and demand, with no clear group of countries seen to lower their demand.
The Organization of the Petroleum Exporting Countries, however, want to lower supply, even as 1 million barrels of oil are “underproduced” daily since June.
This can reach up to 2.8 million barrels daily, said Abad. (ABS-CBN News)
