"At the DOE’s end, we are working out the dismantling of the ECTF this week," Energy Secretary Vincent S. Perez said in an interview during the First DOE Passenger Car Fuel Economy Run 2003.
But Perez said they would keep the level of minimum inventory imposed on oil companies.
"I think that the current level of minimum inventory is the cost of doing business today. It is a good policy that we maintain a minimum (oil) inventory in the country," Perez said.
At the height of the uncertainties over the possible impact of the US-Iraq war, the DOE decided to increase the minimum in-country oil inventory of oil firms.
But when the war broke in Iraq and the oil prices in the international market started to stabilize, the DOE relaxed the minimum oil inventory for all oil players in the country.
For oil refiners, the DOE reduced the oil inventory to 15 days from 30 days. While other oil players are asked to maintain a minimum inventory of seven days from 15 days.
The DOE has maintained the minimum inventory on liquefied petroleum gas (LPG) at seven days.
Last year, President Arroyo issued Executive Order 134 requiring oil companies to maintain a minimum level of inventory to ensure a continuous, adequate and stable supply of crude and refined petroleum products in times of crises.
The minimum oil inventory, he said, took effect in February this year. As of April 21, the country has 72 days supply of oil. Of which, crude in stock is at 31 days while crude in transit is 14 days. – Donnabelle Gatdula