BY:DONALD SEVILLA
LET’S MODERATE OUR GREED
The Middle East is up in flames and a dangerous flashpoint that could lead to a broader conflict.
Amid this volatile situation, we must be wary of economic opportunists who jump at the slightest chance of making substantial profits over such crisis.
A considerable percentage of the world’s oil supply pass through the narrow Strait of Hormuz, a logistics chokepoint in this war. Big oil players are expected to raise fuel pump prices even though their inventories were stored before the conflict began.
The Philippines Department of Energy and ERC must step in to mitigate the adverse effects of price spikes. Like any prime commodity such as rice, the country requires a minimum buffer stock of essential supplies for emergencies.
Now is the time for businesses to moderate their greed and not take advantage of the turmoil. Even before the actual airstrikes began, our local fuel pump prices hovered at the P60/ ltr. levels.
Now with bombs falling we expect it to soar, unless big business suddenly develops a conscience to help our already heavily-burdened countrymen by cushioning its impact.
We must be aware that our country’s fuel inventory at the moment may still be substantial before requiring replenishment at a higher cost. Old inventory at old prices, not new prices is fair enough.
Remember the US-ISRAELI airstrikes just started days ago.
References: Department of Energy
Under Philippine law and Department of Energy (DOE) regulations (primarily Executive Order No. 134 and DC2003-01-001), oil companies and bulk suppliers are required to maintain the following minimum inventory levels (MIL) for petroleum products:
Refiners: Must maintain a minimum inventory equivalent to 30 days of supply (comprising crude oil and refined products).
Importers/Bulk Suppliers: Must maintain a minimum inventory equivalent to 15 days of supply.
LPG: Specifically, importers and bulk suppliers of Liquefied Petroleum Gas (LPG) must maintain a 7-day supply.
Key Details Regarding Inventory Requirements:
Scope: These requirements include stocks currently in-country (on-shore) and in-transit to local stockpoints.
Trigger: These levels are mandated to ensure a continuous, adequate, and stable supply during, but not limited to, international conflicts or supply disruptions.
Compliance: Oil companies are required to submit weekly reports to the DOE, and failure to comply may result in fines ranging from P100,000 to P1,000,000, as well as the potential suspension of business permits.
Proposed Increases: Due to geopolitical tensions, there have been proposals to increase the mandatory minimum inventory to 45 days.
Note: As of March 2026, the current mandatory minimum is generally understood to be 15 days for importers and 30 days for refiners, with total industry supply often exceeding this to manage stability.