THE VIEW FROM RIZAL
Over the past few days, we have been asked what we think of the national government's response to the energy crisis the country faces in the wake of the current conflict in the Middle East.
The question has taken on a sense of urgency as hopes for a quick end to the conflict continue to dim.
Over the weekend, it became clear that no direct or mediated talks were about to happen between the major protagonists in the conflict. We import 90 percent of our oil from the Middle East. Our supply is carried by vessels that pass through the Strait of Hormuz, which is not expected to open within the foreseeable future. Now, global anxiety is aggravated by the fact that there appears to be no one on the horizon who speaks with a sober voice and offers a clear prescription for how the conflict could end.
Our view is that the national government has done a good job so far.
This view is based on the crisis, the government's quick response, and its impact on ordinary Filipinos.
For the record, the national government was the first worldwide to declare a state of national energy emergency. This was a good move since it gave the President the needed flexibility to procure fuel and petroleum products quickly, take action against hoarding or profiteering, fast-track imports, and put other fuel-related measures in place.
The members of the President’s cabinet were also quick to act. The Department of Budget and Management released ₱20 billion from the Malampaya gas fund so the Department of Energy (DOE) could immediately buy fuel and stabilize oil product prices. Meanwhile, the Department of Foreign Affairs reached an agreement with Iran to designate vessels flying the Philippine flag and carrying energy shipments for our country as “non-hostile.”
Thanks to the swift action by the national government, the first shipment of nearly 400,000 barrels of crude oil out of the expected 900,000 had arrived in the country. We believe that the shipment will ensure the country has 50 days of supply. We understand that more are coming from Japan and Russia, and that diplomatic efforts are underway to obtain additional supplies from China, India, and Malaysia.
One particular move which we applaud was the President’s decision to suspend the excise tax on liquefied petroleum gas (LPG). This move favored ordinary Filipinos who rely on this product for household requirements. We support the view that, if the President had opted instead to suspend the excise tax on gasoline, such a move would favor the well-off.
We also laud the cash subsidy to public transportation drivers, and the fertilizer and fuel support for farmers and fisherfolk. The move may have prevented an outright disruption to our mobility and food supply.
Critics of the national government have been quick to note that these moves are, at best, “palliatives” and “temporary.” Our view is that these moves are, nevertheless, necessary and responsive to the needs of the times. We must not overlook the laudable speed with which the national government had acted and put the response measures in place.
We agree that there must be a longer-term plan to ensure that we are insulated from future energy shocks. At the minimum, the effect in the future must ideally be minimal. We cannot forever be reeling from the volatility in the Middle East.
The fact is, the national government understands that concern and recognizes that the disruptions in the Strait of Hormuz are a “wake-up call.” We are confident that the situation will push the concerned agencies to accelerate our shared aspiration for long-term resilience.
President Bongbong Marcos, Jr. and Secretary Sharon have mentioned these necessary steps, which are based on the Philippine Energy Plan (PEP). These include greater energy security, diversification, development of our local energy sources, and a further push for the development, use, and integration of renewable energy. There are also proposals for a “national oil stockpile” – strategic petroleum reserves that go beyond present requirements and which could last for at least 40 to 50 days.
We also welcome the idea of seeking other sources of imported energy to reduce our dependence on developments in the Strait of Hormuz.
The national government has proven it has what it takes to act quickly in crisis situations and understands the need for solid planning to build greater resilience. Our hope is that it will remain focused on what truly matters at this point for our national survival.
What worries us is the signs that turmoil in the political arena may accelerate soon. We hope the potential resulting melee will not distract our national leadership or all of us. The perennial drama on the political stage is a sure-fire crowd-drawer. After all, watching telenovelas is a national passion and pastime.
However, we must not succumb to that temptation at this point. There is no clear resolution to the conflict in the Middle East. We must not forget that we are collateral damage in that war. Our survival depends on our creativity and on keeping our eyes focused on what truly matters at this point.
(The author is a Doctor of Medicine, an entrepreneur and the mayor of Antipolo City, former Rizal governor, and DENR assistant secretary, LLDA general manager. Email: [email protected])