TAGUIG CITY – The Department of Energy (DOE) is informing the public of its analysis and guidance regarding the recent movement of the prices of petroleum products. This consists of three parts: (1) Reports on the World Market which affects the Domestic Market prices because the Philippines is an importer of oil products; (2) Guidance for consumers on choosing the retail outlet with the best price or services; and (3) Energy efficiency tips for more energy and monetary savings for the consumers.
A. WORLD MARKET
International oil prices for August declined, causing corresponding pump price rollbacks. This is reportedly caused by the uncertainties over new COVID outbreaks and the strengthening of the US dollar over concerns that global economic recovery might slow down.
With the re-imposition and tightening of restrictions due to the spike in COVID cases, Platts revised its the demand growth for Q3 by 0.8 mil b/d to 100.50 mil b/d, from 101.3 mil b/d in the June forecast. These downward revisions are concentrated in the third quarter, mainly in Asia and Africa.
Moreover, the world market developments reflect the ongoing volatility of the OPEC policy on supply after OPEC+ agreed, in principle, to increase supply by 400 thousand barrels per day from August to December this year. They agreed to ease their production cuts and their extension until end of 2022, except for the United Arab Emirates.
B. DOMESTIC MARKET
The downtrend in international prices has caused corresponding rollbacks in the first two weeks, with an imminent third this week. In the first half of the month, gasoline dropped by P0.65 a liter, P1.00 for diesel, and P1.15 for kerosene.
Amidst all these developments, the DOE through its Oil Industry Management Bureau (OIMB) continues to guide consumers in choosing the retail outlets that can provide the best price or services through the following initiatives:
• The availability of the Waze-initiated pump price monitoring in the Waze app for NCR, which has been supported by the public, as well as its updates on road conditions to avoid traffic.
• The access to information on the weekly movement of prices of petroleum products such as gasoline, diesel, and kerosene and rating of other retail outlet services in the DOE website based on the partnership of the DOE and Angkas.
Under the partnership, Angkas riders monitors and reports the pump price and evaluates the gasoline station’s facilities, as well as its services based on the criteria set for the program. A Seal of Excellence will be awarded to qualified gasoline stations by December 2021 in time for the celebration of the National Energy Consciousness Month.
C. ENERGY EFFICIENCY FOR CONSUMERS
The DOE’s sustained communication campaign on fuel economy emphasizes the following energy efficiency tips for consumers to practice:
1. Efficient Vehicle Utilization
• avoiding hard braking and acceleration
• observing good car maintenance
• planning trips beforehand
• using navigation apps such as Waze or Google Maps
• avoiding idling of vehicle; turn off the engine when waiting or parked for long periods of time
• using of carpool whenever possible, following the IATF-prescribed health and safety protocols
2. Using Alternative Modes of Transport
• walking when covering short distances
• using a bike
For its part, the DOE will continue to collaborate with its stakeholders in finding solutions to current and future challenges during this pandemic.
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