PHL eyes importing cheaper oil from non-OPEC countries —Palace

Malacañang on Saturday said the government is exploring the possibility of sourcing fuel requirements from countries outside of the Organization of Petroleum Exporting Countries (OPEC) in an effort to ease the impact rising petroleum prices.

"Gumagalaw na po ang DOE (Department of Energy) ngayon para maghanap ng mas murang langis galing po sa mga non-OPEC members, kasama na po ang Russia," presidential spokesperson Harry Roque Jr. said in a radio interview.

"Gagawin po natin ang lahat para po makaangkat ng mas murang mga langis, dahil hindi naman lahat po ng oil producers ay members ng OPEC. At tinitingnan po natin iyong posibilidad na sa diesel man lang, kasi diesel po ay makaangkat tayo galing sa bansang Russia," Roque said.

OPEC is an intergovernmental organization of 14 oil-exporting countries namely Angola, Algeria, Ecuador, Equitorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, qatar, Saudia Arabia, United Arab Emirates, and Venezuela.

As of May 25, the price of the OPEC basket of crudes stood at $76.62 per barrel.

In the Philippines, prices of diesel range from P41.40 to P47.78 per liter, while gasoline costs P50.85 to P60.85 per liter.

The rising prices of petroleum products prompted calls to suspend the tax reform law, which imposed an excise tax of P2.50 per liter on diesel and raised the levy on gasoline to P7 from P4.35 per liter.

The excise tax rate on diesel and gasoline will hike by P6 per liter and P10 per liter come 2020.

"Kaya nga lang po ang sabi, eh mas mataas iyong sulfur content, so baka kinakailangan i-process muli sa Singapore. Pero kung kinakailangan pong gawin iyan para panlaban dito sa mahal na diesel, gagawin po iyan ng pamahalaan at ina-anticipate ko po na ang DOE po at saka ang DFA (Department of Foreign Affairs) gumagalaw na po, dahil hindi naman pupuwede na wala tayong gagawin habang tumataas ang presyo sa world market,' Roque said.

"Nakipag-ugnayan na rin po sa pribadong sektor iyong mga distribution. At sila naman po ay tutugon sa tawag ng panahon, at kung makakaangkat tayo ng mas mababang diesel, ang pangako nila, ibebenta nila sa mas mababang presyo," the Palace official added.

Apart from considering to import oil from non-OPEC countries, Roque said the Tax Reform for Acceleration and Inclusion (TRAIN) law has a built in mechanism that will suspend the succeeding tranches of hikes in excise taxes if the average price of crude oil reaches a certain amount.

"Tatlong buwan at tumaas po ng otsenta ($80 per barrel), iyong mas mataas na excise tax sususpendihin; mayroon pa rin pong excise tax pero iyong luma, iyong mas mababa excise tax ang kokolektahin," he said.

The Palace official said President Duterte also ordered the Department of Trade and Industry to be vigilant and look for those taking advantage of the TRAIN law.

"Kaniyang pinag-utos – unang-una iyong DTI na magmasid at talagang hulihin iyong mga negosyante na lumalabag sa suggested retail price. Kasi ang dami ring nagsasamantala sa ngayon, talagang napakataas ng bilihin, pero ito po siguro mga 70 percent nagsasamantalang mga negosyante. Mayroon po iyang fine at mayroon din po iyang pagkakasara. So iyan po, lahat po noong DTI surveillance team activated," Roque said. — Ted Cordero/MDM, GMA News