DOE: Oil crisis unlikely to end soon amid Middle East tensions - GMA Network

The oil crisis is unlikely to end soon as escalating tensions in the Middle East continue to push crude oil prices higher, the Department of Energy (DOE) said on Tuesday.

Energy Secretary Sharon Garin said it has been nearly seven months since the conflict in the Middle East began, triggering an oil crisis globally. She admitted that she does not see an end to the crisis in the near future.

"When the war started in the Middle East, the expectation from the DOE side, based on our assessment, [was that] this would last a long time... We have been dealing with this conflict in the Middle East for almost seven months," Garin said in a press briefing.

"Today, based on our assessment, based on what's happening in the Middle East, not only in Iran or the surrounding areas but an increasing area of the Middle East, it does not look like it will end anytime soon," she added.

Fuel companies implemented another round of price hikes on Tuesday, September 15.

The price of diesel increased by P4.31 per litre, while gasoline rose by P5.68 per litre and kerosene by P4.62 per litre.

"Now you see in the news that the conflicts there have increased even more. That's why [prices] are rising again. Our forecast is that this will continue for a long time," Garin said.

Despite the continuing price increases, the DOE assured the public that the country's fuel supply remains sufficient for more than 50 days.

"The average of the whole country is more than 50 days. So we are over and above what is legally required... We have 50 days to replenish what we need," Garin said.

The DOE also confirmed that it has certified the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene after the benchmark price of Dubai crude oil breached the $99.41-per-barrel level, well above the $80-per-barrel threshold set by law.

"As of August 13 to September 11, the average benchmark price of Dubai crude oil reached US $99.41 per barrel. This is already above the threshold set by law. That is why we have officially certified this and transmitted it to the DBCC for their consideration," Garin said.

In March, President Ferdinand Marcos Jr. signed Republic Act No. 12316 into law in March, giving him emergency powers to suspend or reduce the excise tax rate on fuel.

Under the law, the suspension or reduction of fuel excise taxes may be implemented for up to three months if the average price of Dubai crude oil, based on the Mean of Platts Singapore (MOPS), reaches or exceeds $80 per barrel for one month.

Brent crude prices have hovered around $102 per barrel. — MCG, GMA News