Palace sets contingency measures in case of oil crisis

MANILA, Philippines - Malacañang assured the public yesterday that contingency measures are in place in case fuel prices rise dramatically due to tensions in the Strait of Hormuz. 

Presidential spokesman Edwin Lacierda said one of the measures is the reactivation of the subsidy program for transport groups under the Pantawid Pasada Program of the Aquino administration.

Lacierda said the Department of Energy (DOE) still has some P200 million that it can use to lessen the effects of the oil price hikes on transport groups and dissuade them from demanding higher fares.

“Just to let you know, the Dubai (oil) prices increased by $6 per barrel, that is the reason why there was an increase in the prices of oil,” Lacierda said.

He stressed that under a revitalized PPP, concerned groups would no longer encounter problems that marked the first PPP.  

When asked for details, Lacierda said it would be up to Energy Secretary Jose Rene Almendras to provide them.

Local pump prices rose by almost P2 per liter yesterday. It was Iran’s threat to close the Strait of Hormuz that sparked renewed tensions in the region.

The Strait of Hormuz is the only route for ships carrying petroleum from major oil-exporting countries in the Arabian peninsula. It is one of the busiest shipping lanes in the world.

Lacierda allayed fears of fuel rationing, saying it is just one of the contingency measures being eyed if developments in the Middle East worsen.

“Let me clarify: we are not going to start rationing oil,” he added.

He said the DOE would continue to look for other solutions, including lowering the country’s consumption of fuel.

“I spoke to Energy Secretary Almendras on that. Let me clarify: it is only a contingency plan. He does not believe that the events in the Strait of Hormuz will worsen,” Lacierda said.

Meanwhile, the Department of Labor and Employment (DOLE) is open to a “work from home” scheme for commercial establishments nationwide in an effort to address a possible oil shortage in the country.

“If the work can be done at home it (work from home scheme) would be a good economic measure,” Labor Secretary Rosalinda Baldoz said.

The DOE earlier announced that the government is considering various measures, including a work from home policy, to reduce the country’s fuel consumption.

Under a work-from-home setup, an employee may simply tap electronic communications including the Internet to perform his tasks and communicate with his office. Such work arrangement is becoming common worldwide.

If necessary, Baldoz said the DOLE may issue an advisory to encourage employers nationwide to adopt such scheme.– With Mayen Jaymalin