Senators Including Sen. Loren Legarda Questions Oil Price Hikes in PH
LOREN LEGARDA – The Senator expressed her dismay on the increase in the costs of fuel that were purchased under a regular price prior to the war in the Middle East.
The Philippines is one of the countries that are greatly affected by the ongoing war in the Middle East. While the country is not directly involved in the unfortunate conflict, it is currently facing the challenge of high oil costs which is affecting a lot of products.
The pump prices in the Philippines have increased thrice already since the Middle East war broke out. Iran previously warned the world to prepare for oil to hit $200 per barrel. The country was attacked by the United States and Israel three (3) weeks ago and several Iranians died from the said airstrikes.
Following the attack, Tehran banned the U.S. and Israel-linked vessels from passing the Strait of Hormuz. It is a vital waterway for oil shipments.
United States Pres. Donald Trump even warned Iran that they might be attacked much harder if they will disrupt the global oil flow. However, such warning did not make the Iranians yield.
Trump also previously gave Iran a 48-hour ultimatum to open the Strait of Hormuz for everyone or else they will blow away their powerplants. In its response, Iran issued a threat to fully close the waterway for everyone. Visibly, it is not backing off from U.S.
The Philippines is heavily-dependent on imported oil. Amid the high costs of fuel in the country now, Sen. Loren Legarda expressed her dismay on the rising of the costs of fuel that were acquired by the gasoline stations prior to the onset of the war.
According to Sen. Loren Legarda, to her, it seems unfair as the fuel was purchased under a regular price. Based on News5, she stressed during a Senate hearing that the consumers are not the insurer of the risks of the private companies.
“Wala pang pagtaas ng mga binili, pero, tinataas at sinisingil na sa consumers. Hindi naman po tayo insurer ng risks ng mga pribadong kompanya. I just feel it’s unfair kasi binili naman ‘yun sa regular na presyo,” Legarda said.
Mar Valbuena, the chairman of the transport group Manibela, attended the Senate hearing. He demanded for refund from the fuel stations.
“Overpriced ‘yung mga dalawa hanggang tatlong linggo na ibinenta sa aming fuel. I-refund nila ‘yung mga 100 to 120 percent na itinaas dito kung imbentaryo pa ‘yung ibinebenta,” the chairman of the transport group Manibela said at the Senate hearing.
However, according to the Department of Energy, the rising of the prices of fuel from the old inventory is called the “replacement cost”. Based on the report, it means that they have included in the cost of the fuel in their inventory the expenses in replenishing their supply.
According to Chevron, one of the giant and most popular oil companies in the Philippines, the sudden increase of the pump prices is allegedly a “standard practice” already.
Recently, Pres. Ferdinand Marcos Jr. announced the date as to until when the supply of crude oil in the Philippines will last.