Oil price hikes may persist till next year — DOE

The lingering price hike in oil and other petroleum products may persist up until the end of the year or in the first quarter of 2022 due to still limited supply of energy, an official of the Department of Energy (DOE) said Tuesday, Oct. 12.

DOE-Oil Industry Management Bureau Director Rino Abad made the projection based on the projection also made by the Organization of the Petroleum Exporting Countries (OPEC)—an organization of oil-producing countries.

"Ang pinanggagalingan po talaga ng sunod sunod na increase ay yung fundamental insufficiency ng crude oil supply sa ating international market...Ang kulang po ngayon ay umaabot po ng 2-3 million barrels of crude oil per day (The reason behind the continuous oil increase is the fundamental insufficiency of crude oil supply in our international market. We lack 2-3 million barrels of crude oil per day)," Abad said in an online public briefing.

The DOE recently said that the high demand for crude oil was prompted by the opening of economic activities worldwide.

Meanwhile, prices of petroleum products, such as liquefied petroleum gas (LPG), will only go down by November once Western countries that currently experience winter halt stockpiling LPGs for heating.

"Yung pangayayari po ng LPG, para po itong nagkaroon ng timing ng pagkasama-sama ng mga events, kung saan nagkaroon po talaga ng upside trend ng price (The increase in LPG prices was also prompted by various events, wherein there's an upside trend in energy prices)," Abad said.

"Unang una, may kulang po 'yung crude oil, yung supply natin. At the same time itong period po itong winter season from October of this year to March of next year, ito po'y winter season sa ibang lugar, nagkakaroon po ng pag-iimbak ng LPG (First of all, there's a lack of supply for crude oil. At the same time, some countries are experiencing winter from October to March, so they are stockpiling LPGs)," he added.

Currently, Abad said, the country's Finance and Budget Departments are conducting "exhaustive consultations" on how to ease the burden of public utility vehicle (PUV) drivers.

The DOE, along with the Land Transportation Franchising Regulatory Board, is considering allowing PUV drivers to conduct a fare hike or giving them financial assistance amid the oil price hike.

Abad advised motorists to look out for various oil companies as they are offering promos and discounts as well as take public transportation instead.