DoE: Oil prices may rise after the closure of Pandacan oil depot

Prices of petroleum products may rise after oil firms shut down their facilities at the Pandacan oil depot to comply with the order of the Supreme Court, GMA News' State of the Nation with Jessica Soho reported on Wednesday.

 

The additional cost factor will come from oil companies having to get their supply of products directly from oil refineries in Bataan and Batangas, 

 

"There could be impact in rates 'pag ipasok na 'yung diprensiya sa transport," Department of Energy (DoE), undersecretary Zenaida Monsada said.

 

According to DoE, 50 to 70 percent of oil products in Luzon including the National Capital Region are coming from the oil depot in Pandacan district.

 

DoE expects one to two days of lag time in the delivery of petroleum products as refineries are in Batangas and Bataan.

 

"So you'll have more trucks so pandagdag siya ng traffic congestion and dagdag ka ng freight. Iba yung transport cost mo using truck compared dun sa barge," Monsada said.

 

United Filipino Consumers and Commuters president Rj Javellana said additional costs should not be shouldered by consumers.

 

"Napakalaki po ng kinikita nila sa atin so huwag naman ipasa sa hirap na hirap na taumbayan," he said.  — Kathryn Mae Tubadeza/ELR, GMA News