Government urged to prepare for looming oil price hike: Philippines

Government urged to prepare for looming oil price hike: Philippines

The government should prepare for a potential increase in domestic oil prices following a recent cut in global output by oil producers, Sen. Sherwin Gatchalian said yesterday.

Gatchalian, vice chairman of the Senate committee on energy, said in a statement that the Department of Energy (DOE) should immediately coordinate with industry players to ensure a sufficient and steady supply of energy in the country after Saudi Arabia and other OPEC+ oil producers announced further cuts to oil output by 1.16 million barrels per day.

'This event is unfortunate, and the government should immediately take actions that would cushion the impact of a possible effect on the domestic economy, particularly since this would further intensify inflationary pressures,' he said.

Gatchalian urged the DOE to expedite the implementation of the Electric Vehicle Industry Development Act (EVIDA) to usher in a more widespread use of electric vehicles to ease the country's dependence on imported oil in the long run.

He also called on the Land Transportation Regulatory and Franchising Board (LTFRB) to initiate preparations for an efficient and timely implementation of the Pantawid Pasada program.

Gatchalian earlier filed Senate Bill 384, which seeks to institutionalize the Pantawid Pasada program given the need to set up an energy subsidy