The Philippines’ oil import bill in the first quarter of the year increased by 25 percent to $3.95 billion from $3.16 billion in the same period last year, due to higher oil prices and a slight increase in the volume of imported fuel.
According to data gathered by the Inquirer, the country imported 5.25 percent more petroleum products in the first three months to hit a volume of 31.807 million barrels from the year-ago level of 30.22 million barrels.
Of the 31.807 million barrels, crude imports accounted for 63 percent, or 19.921 million, while the remaining 37 percent, or 11.886 million barrels, consisted of finished petroleum products.
The country’s export earnings, meanwhile, plunged 37 percent to $275.8 million in the first three months of the year compared to the $437.1 million posted a year ago.
This decline can be attributed to the 46-percent drop in the export volume to 2.285 million barrels from the previous year’s 4.245 million barrels.
This brought the country’s net oil imports—or crude and petroleum product imports minus exports—to $3.674 billion in the first quarter, up 35 percent from the $2.725 billion posted in the same period last year.
Energy Secretary Jose Rene D. Almendras said that there is a possibility that oil prices will go down toward the end of the year following seasonal fluctuations. However, he warned of high volatility in oil prices.
“We’re ok for now as local oil prices continue to go down. But what I worry about is that because fuel prices are going down, people might forget about our alternative fuels program, the compressed natural gas buses, and other long-term measures,” Almendras said.
The energy chief stressed the need to invest in these long-term programs to shield the country from fluctuating oil prices in the global market.
The DoE is crafting plans to reduce fuel imports by harnessing indigenous as well as renewable sources of energy. The government, for example, has formulated the Alternative Fuels Roadmap, which seeks to diversify the Philippines’ transport fuel mix.
The DoE, in particular, wants the 2,000 diesel-run jeepneys to eventually run on liquefied petroleum gas (LPG) and natural gas.
The cost of conversion is pegged at P200,000 per jeepney, which is why the government is working with multilateral agencies that are willing to lend money for the conversion program at easier terms.
The government is also looking to award within the year contracts for the exploration and development of the country’s own resources, to lessen the reliance on imported fuel.