Department of Energy (DOE): Secure supply amid constrained global production
Secretary of the Department of Energy (DOE) Alfonso Cusi has urged oil firms to guarantee local supply of the commodity in the next months, citing the limited worldwide supply.
Cusi stated oil businesses should follow Executive Order (EO) No.134’s Minimum Inventory Requirement (MIR), which directs local oil suppliers and bulk corporations to have a minimum petroleum stock to guarantee sufficient supply and prevent price spikes.
“I am ordering all oil firms in the nation to guarantee sufficient supply and develop measures to minimize any price increases of oil products in the coming months,” the DOE head stated in a statement released Tuesday, October 5, 2021.
Oil firms and bulk suppliers must have at least 15 days’ worth of petroleum products on hand, and a minimum of seven days’ worth of liquefied petroleum gas on hand, according to the EO’s implementation instructions (LPG).
Refineries, on the other hand, should have a minimum of 30 days’ worth of crude oil and refined petroleum products on hand.
“Aggressive demand is expected to reach as high as 103 million barrels of crude oil per day (mbpd) in the fourth quarter, while supply is only about 103.22 mbpd,” according to the Oil Industry Management Bureau.
Despite the fact that economic activity is anticipated to go up in the fourth quarter, oil producers are sticking to their plan of progressively raising production by 400,000 barrels per day.
On Monday, Brent crude surpassed the USD80-per-barrel mark, marking the highest trade price in three years.
Firms implemented significant price increases on local oil prices Tuesday morning.
With the price changes, local crude prices have increased by PHP16.55 per liter for gasoline, PHP15 for diesel, and PHP13 for kerosene year to date.