120 0 0 3 min to read

Government-owned crude hoarding is supported by an industry group.

MANILA, Philippines – The Independent Philippine Petroleum Companies Association (IPPCA) supports the creation of a government-owned strategic petroleum reserve as one of the long-term solutions to the global market’s unpredictable oil prices.

In a Senate Energy Committee meeting on Monday, IPPCA head Fernando Martinez stated that the stockpiling facility should be for crude since it is safer to store than diesel and gasoline.

“It’s strategic to hold crude because, unlike diesel or gasoline, you don’t have to dispose of it right once,” Martinez said, noting that diesel and gasoline have a shelf life.

According to him, the sector has requested to the government that land in Batangas and Bataan be converted into strategic reserve facilities because both provinces have ports.

Martinez also renewed his call for the central bank to hold the country’s reserves in “black gold” rather than dollars or gold.

IPPCA opposes the proposal to increase the monthly inventory requirement for diesel and gasoline from 15 to 30 days since it would require oil companies to spend more on fuel imports.

According to the industry organization, oil companies are now spending an additional PHP15 billion to import the same volume of petroleum goods due to rising global costs.

Martinez noted that increasing the monthly stock need will raise the cash required to import fuel items, which small independent players will be unable to meet.

He claims that oil companies will bear all losses if prices fall after tripling their inventories.

Meanwhile, Martinez suggested that the government investigate ways for suspending the oil excise tax.

Instead of suspending the excise tax after three months of rising oil prices, he suggested suspending it after one month.

QR Code

Save/Share this story with QR CODE


Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

πŸ“© Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.


We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❀️GIVE A TIP. Send a small donation thru Paypal😊❀️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) πŸ›’ BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) πŸ‘ Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).


AFFILIATE PARTNERS
LiveGood
World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.


0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x