DOE Sec hits critics for barbs on fuel price hikes

By Lito Dar

BAGUIO CITY -- Department of Energy Secretary Jose Rene Almendras said the government is practicing transparency as far as fuel pricing is concerned, contrary to claims by some groups.

In a media interview, Almendras said every Monday they are meeting with transport sector representatives to review and monitor changes in the price of fuels in the international market and determine how it can affect fuel prices in the country.

Almendras said whatever increase on the pricing of fuel is based on international factor, which in the case of the Philippines, is based on the ‘Dubai index’ as the country is importing 80.8 percent its petroleum requirements from the Middle East.

The secretary added the Dubai Index is high now which also affects or increases price of fuel in the country, due to escalation of problems in Syria and on-going civil unrest in other Middle East countries.

Almendras said the West Texas Index (WTI) - the basis of fuel pricing in the United States, which is going down cannot affect the fuel price in the country as it has stopped selling to the country about 12 years ago, contrary to what some groups are claiming.

On the issue of regulating fuel prices in the country, Almendras said at present there is the deregulation law which aims to promote competitiveness in fuel prices, among stakeholders such as dealers, retailers and gasoline stations.

“As much as we want to control the prices of fuel, we cannot compete with a deregulated international market and at present there is also no country or economy in the world that can control or regulate the world oil market. Our country presently lacks the resources to interfere or subsidize the price of fuels as what some countries have been doing”, Almendras said.

Almendras added the country is not the highest in terms of fuel price. “Our price is even lower compared to the US, Hongkong, Singapore, Australia, Indonesia, New Zealand and even Indonesia which have poured a lot of money to subsidized fuel price in their country, he added.