MANILA, Philippines—Higher oil prices increased the country’s oil import bill by 18 percent to $3.16 billion in the first three months of the year, from only $2.67 billion in the same period last year.
This was despite a 9-percent drop in the volume of crude oil and finished petroleum products imported in the first quarter of the year to 30.22 million barrels, from a year-ago level of 33.267 million barrels, according to data from the Department of Energy (DoE).
Of the 30.22 million barrels, crude imports accounted for 61 percent or 18.451 million, while the remaining 39 percent or 11.773 million barrels consisted of finished petroleum products imported by the country’s oil majors and independent oil players.
Meanwhile, the country’s export earnings surged by almost 83 percent to $437.1 million in the first quarter from the previous year’s $239.2 million. Export volume likewise rose significantly by 47 percent to 4.245 million barrels from the previous year’s 2.896 million barrels.
Thus, total petroleum export earnings brought net oil imports—or crude and petroleum product imports minus exports—to $2.725 billion in the first quarter this year, up 12 percent from the $2.43 billion posted in the same period last year.
With oil prices expected to increase toward the end of the year, the Department of Energy has begun implementing measures to help cushion the impact of spiraling prices, particularly on the transport sector.
“To lessen the country’s dependence on imported oil, we have moved towards cleaner, more indigenous fuel. The most feasible alternatives would be liquefied petroleum gas, compressed natural gas, biofuels and even electricity,” noted Zenaida Monsada, director of the Oil Industry Management Bureau of the DoE.
Separately, Energy Undersecretary Jose M. Layug Jr. said that in the short term, the public transport will be given various forms of assistance, such as discounts from oil companies and the P450-million Pantawid Pasada Program.
The government is also crafting the Alternative Fuels Roadmap, which seeks to diversify the Philippines’ transport fuel mix.
The DoE wants to convert the engines of over 2,000 diesel-run jeepneys so that these can run on liquefied petroleum gas (LPG) and natural gas.
As for the long-term, the government is pushing for the exploration and development of the country’s own fuel resources.