US-Iran tension definitely impacts local fuel prices — DOE

Marje Pelayo

MANILA, Philippines – The Department of Energy (DOE) is monitoring the movement of fuel prices in the international market in view of the ongoing tension in the Middle East particularly between the United States and Iran.

Though the Philippines has a different fuel source other than Iran, the DOE said the conflict has hugely affected other Gulf nations where the country buys oil.

One effect, the DOE fears, is the delay in crude deliveries which will likely affect the prices of oil in the country.

“Ang Iran kasi napaka strategic ng location niya lalo na doon sa dadanan ng ating mga vessel o yung nga barges – iyong (Iran’s location is very strategic. Our vessels or barges pass through its territory, the) Strait of Hormuz,” explained DOE-OIMB Assistant Director Rodelo Romero.

“If you will notice in the past, once na magkaroon ng threat, yun ang target nilang sarahan (once there’s threat, that’s the first target for closure),” he added.

Among the countries in the Middle East that supply oil to the Philippines include Saudi Arabia, Kuwait, Qatar and Oman.

Meanwhile, the DOE confirmed that no oil company has yet imposed the additional excise tax on oil.

The Department has ordered all oil companies to submit their respective inventory reports until January 8, 2020.

They are also required to put up advisory in their respective oil stations before they impose the third tranche of Tax Reform for Acceleration and Inclusion (TRAIN) Law on their products. – MNP (with details from Joan Nano)

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