So what has the Department of Energy (DOE) been doing amid the successive and hefty price hikes on fuel?

For former House Deputy Speaker LRay Villafuerte, the agency simply isn't doing enough to give the public respite from these pump price increases, especially since it has yet to take significant action on its long-planned national strategic petroleum reserve (SPR).

"It’s rather disgusting that years after the SPR has been considered by the government as an option, the best that energy officials can say at this time of skyrocketing fuel prices is that they are set to study it,” said Villafuerte in a statement Monday, Feb. 21.

For years now, the Camarines Sur 2nd district congressman has been prodding the energy department to put up such a national oil reserve to shield Filipino consumers from unabated price surges, particularly in the world market.

Villafuerte vented his frustration as Rodela Romero, director of the DOE Oil Industry Management Bureau, told a “Laging Handa” public briefing at the Palace last week that her office had proposed the crafting of a law that will grant DOE the power to put up an SPR, either for commercial or for strategic reasons to address supply disruptions.

She was quoted in the media as saying that the DOE seeks to find out in a proposed study the project cost to establish the SPR, along with its ideal capacity, withdrawal schedule, and priority sectors to be served. She said the DOE is reviewing a new terms of reference (TOR) for a rebidding for the procurement of a consultancy service that will conduct the study.

“The DOE is not even doing the study yet; it is still at the stage of preparing to conduct such a study. So when do we expect the SPR to be up and running when the DOE is merely posed to conduct a study at this point? There is no sense of urgency here,” Villafuerte said.

“The DOE must do a lot more—and do it much faster—than just to plan a study on the SPR. Had this department accelerated its plan to establish an oil reserve, we probably wouldn’t be having the kind of supply and pricing problems now that have jacked up fuel prices seven times in less than two months,” he underscored.

Villafuerte called on the DOE almost two years ago to go ahead on its plan to set up its own oil stockpile in the face of the volatile supply and prices of petroleum products.

Last June, Villafuerte reiterated his call for the establishment of the SPR after observing that the vaccine-driven economic recovery in the United States (US) and Europe had started to ease travel restrictions and increase demand anew for fuel.

Pump prices of petroleum products have risen by about P8 to 10 per liter since last year. In 2022 alone, seven consecutive weeks of price spikes since January have driven up the cost of regular gasoline to about P64 per liter and diesel to P54 for a liter.

Fuel prices are expected to go up this week for the eighth consecutive time thus year as the international benchmark Brent crude rose to $93 per barrel last week and Dubai crude—the reference for pricing in Asian markets—settled at $91.

According to reports, the retail cost of gasoline might increase by another 95 centavos to P1.05 per liter this week, and that of diesel by 55 to 65 centavos a liter.

“The government should study thoroughly what method of oil stockpiling would be best for the country, the logistical requirements involved, and whether crude oil or petroleum products should be stored," Villafuerte said.