DoE sees first shipment of non-OPEC oil this month

By Victor V. Saulon
Sub-Editor
THE Department of Energy (DoE) targets to receive this month the first shipment of oil from non-members of the Organization of the Petroleum Exporting Countries (OPEC), including Russia, Energy Secretary Alfonso G. Cusi said.
“The process has started. Ang tina-target (the target) is June,” Mr. Cusi told reporters. He was referring to DoE’s directive to its commercial arm Philippine National Oil Co.-Exploration Corp. (PNOC-EC) to engage in the selling of petroleum products sourced from non-OPEC members.
The move is aimed at shielding consumers from volatile international oil prices and supply security of supply. The imported fuel is to be sold to independent petroleum dealers and to vulnerable sectors, such as public utility transport groups.
“There is no prohibition for the government to do that. We are doing that not because the government is prohibited, it’s not. It’s not like in the power generation,” Mr. Cusi said.
He said PNOC-EC was looking at Russia as a possible source of petroleum products, but said this was just one of many options.
“There are available tankers that we can charter,” he said. “On the part of storage, there have been a lot of negotiations already on the storage facilities available.
“Let’s make use of what is available until such that we put one big [facility],” he said, citing possible storage facilities in Subic, Quezon, and the Phividec complex in Misamis Oriental.
In a statement during the weekend, the DoE said it expects to receive the first shipment by the end of June.
At present, oil companies are required to maintain a minimum inventory of in-country stocks equivalent to 30 days of crude and products for refiners, 15 days of products for importers and bulk suppliers, and seven days of liquefied petroleum gas (LPG) stocks for LPG players.
Aside from ensuring the country’s supply, the Energy department said it would also come out with a policy on unbundling petroleum product prices.
“We need to unbundle the prices. It has to happen,” Mr. Cusi said.
He said the move would provide consumers more information about the petroleum products that they buy.
The DoE is conducting consultations with the stakeholders on the mechanism for unbundling, the agency said.
It said international geopolitical developments, which include US sanctions on Iran, the drop in OPEC production levels and political changes unfolding in Venezuela “have resulted in the recent uptrend in oil prices for the past weeks.”
It added that with the volatile oil prices, it is “encouraging consumers to be smart and judicious in the use of petroleum products, such as driving efficiently and managing trips properly to save on fuel costs, among others.”