DoE imposes tighter oil inventory reporting rule

MANILA, Philippines—The Department of Energy (DoE) has issued a circular mandating local oil companies to submit weekly inventory reports to help the government in ensuring adequate supply of petroleum products in the domestic market.

The oil firms are also required to submit specific documents detailing their actual and projected oil importation and petroleum products exportation monthly, according to the DoE.

These will enable the government to assess more accurately the country’s oil stock inventory as against the country’s daily consumption, which was placed at an average of 300,000 barrels, the DoE said in a statement.

This circular was the third issued by the DoE on ensuring stable fuel supply.

The first circular required all oil companies and bulk suppliers to have a minimum inventory of at least 15-day supply, excluding those in transit, while refiners were required to keep a minimum of 30-day supply consisting of crude and refined petroleum products.

The second “enjoined all oil companies to engage in mutual product sharing accommodations and similar industry practices to stabilize oil supply.”

According to the DoE oil monitoring report, oil prices continued to set new post-recession highs on March 7 due to the continued conflict in Libya. While the market found relief in the assurance made by the Organization of Petroleum Exporting Countries that it would ramp up production to make up for the loss of Libyan crude, prices soared again by the end of the March 7-11 week. During that week, prices picked up by more than $2 a barrel on concerns of growing unrest in the world’s largest oil exporter, Saudi Arabia.

“About 7.3 million barrels of Saudi crude are shipped every day to refineries, satisfying about 8 percent of global demand. The kingdom is also one of only a handful of countries that can increase production to levels enough to meet unexpected increases in demand,” the DoE stated in the report.

The price of Dubai crude rose by $1 a barrel in March 7 to 11. Prices of gasoline and diesel based on the Mean of Platts Singapore benchmark also posted increases of $1.10 a barrel and $2.15 a barrel, respectively.

On Tuesday, local oil companies have again raised the pump prices of diesel by 60 centavos a liter; premium and unleaded gasoline by 50 centavos a liter, and regular gasoline and kerosene by 30 centavos a liter.

The latest price hike was the fourth implemented in March alone and the ninth since the beginning of the year. These resulted in a total increase of P7.25 a liter for gasoline and P7.10 for diesel.

In a related development, the DoE said it was continuing efforts to cushion the impact of rising oil prices on the transport sector, the most vulnerable segment to oil price movements.

The DoE had encouraged oil industry participants to increase the number of gasoline stations offering discounts to public utility vehicles (PUVs) and to increase the discounts.

So far, only Pilipinas Shell Petroleum Corp. had heeded the government’s call as it raised diesel discounts for the transport sector to P1.50 a liter.

The DoE said it was also pushing for the conversion of diesel-fired engines to those that use liquefied or compressed natural gas.