DOE dismisses fuel rationing calls amid oil import reliance unless demand spikes

Amid the country’s dependence on imported oil, Energy Secretary Sharon Garin said on March 17 that fuel rationing will not be implemented unless demand triggers a surge in hoarding or excessive storage by consumers and businesses.

“Parang wala pa naman ‘yan sa naeenvision namin based on the situation today. Parang ‘di pa naman. Basta wala lang hoarding, magtipid lang tayo,” Garin said, noting that the government has not considered the intervention as current conditions do not warrant it.

‎She added that supply pressures could be mitigated by negotiating with suppliers from other countries, although this may come at a higher cost.

‎Garin also said that the Department of Foreign Affairs has informed the energy sector that the government may procure fuel from Russia through a state-to-state arrangement. 

‎To further stabilize supply, the Philippine National Oil Company plans to import diesel and sell it at cost to private oil firms to boost available stocks. 

The government earlier projected that current fuel inventories would last until the end of April, while orders for May deliveries are still being finalized.

‎Garin emphasized that the government cannot impose a price ceiling unless it is granted emergency powers or existing laws are amended.

‎Meanwhile, fuel prices in the Philippines continue to rise, with some reaching as high as P100 per liter, as oil companies implement staggered price adjustments.

The impact of these increases was evident on March 17, when several fuel stations had to improvise their price boards as diesel prices surpassed the P100-per-liter mark, exposing limitations in existing digital display systems.

This marks the second fuel price hike for March, reflecting continued volatility in global oil markets, which has disrupted supply expectations and driven up crude prices.