DOE admits oil import from Russia won’t bring immediate relief to consumers

May 31, 2018

The Department of Energy (DOE) admitted on Thursday that efforts by the government to import oil from Russia would not bring any immediate relief for the public as it would only be stored and can only be used for emergency situation.

In a press briefing in Malacanang, DOE Undersecretary and spokesman Felix William Fuentebella said the state-owned Philippine National Oil Company-Exploration Corp. (PNOC-EC) is eyeing to import 240 million liters of diesel from Russia.

"It's for stockpiling. It's a support on the minimum inventory requirement, so more of energy security," he said.

The government has been looking for ways where to get oil outside the Organization of the Petroleum Exporting Countries, which has tightened production, resulting in high prices of oil in the world market.

While importation of diesel from Russia has no immediate impact on the prices of oil, Fuentebella expressed optimism that in the long run, this would "enhance competition."

"The rippling effect is the most important one, to enhance competition...we are utilizing our government to government relationship," he said.

With the PNOEC-EC move, Fuentebella expressed belief that private companies would, later on, look for other sources of oil from non-OPEC members, such as Russia. Celerina Monte/DMS