Gatchalian: Iran-PH talks on safe passage boost confidence

MANILA, Philippines — The assurance from Iran that ships bound for the Philippines — including those carrying oil and those with Filipino seafarers — will be given safe passage along the Strait of Hormuz is good news and boosts confidence among consumers, Sen. Sherwin Gatchalian said.

Gatchalian on Thursday, in a statement posted on his Facebook page, said that the Philippines being able to secure this commitment from Iran is a huge victory as it may eventually ease the effects of the Middle East conflict.

Earlier, Foreign Affairs Secretary Ma. Theresa Lazaro said she had a “very productive” conversation with Iranian Foreign Minister Seyed Abbas Araghchi to discuss stronger bilateral cooperation on all fronts — during which Araghchi made the assurance about Philippine-bound ships moving along the strait.

“Iran’s assurance of a safe passage for oil tankers moving from the Strait of Hormuz towards our country is a big victory regarding the energy security concerns of the Philippines,” Gatchalian said.

“It gives hope and confidence for consumers, that the effect of the crisis on our economy may be eased. We hope that this agreement will help in ensuring taht the country has enough supply of oil for the coming months,” he added.

According to Gatchalian, this has been their call as they believe diplomacy will play an important role in ensuring that the Philippines has a steady supply of oil.

“We have been calling recently for diplomacy to ensure safe routes on seas, because this is the most effective way of solidifying our oil supply status,” he said.

“We acknowledge the quick action of the Department of Foreign Affairs (DFA) and the Department of Energy (DOE) to fulfill this agreement,” he added.

Several government officials, particularly members of Congress, have raised different suggestions on how to mitigate the effects of rising fuel prices, caused by the Middle East conflict.

Gatchalian himself laid down several recommendations in his preliminary report as chairperson of the Senate proactive response and oversight for timely and effective crisis strategy (Protect) committee.

One of Gatchalian’s suggestions was a possible price cap on petroleum products and the rationing of fuel. According to the senator, President Ferdinand Marcos Jr.’s declaration of a state of national energy emergency allows the DOE to exercise powers granted to it by several energy laws.

Under Section 14 of Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998, the DOE can “impose retail price caps on petroleum products during times of national emergency.”

Regarding fuel rationing, the ad hoc committee chairperson said that R.A. No. 7638 or the Department of Energy Act of 1992 allows the Energy Secretary to “formulate and implement fuel rationing programs during the present national energy emergency.”

READ: Possible fuel price cap, rationing raised in senator’s initial report

This suggestion from Gatchalian, however, was met with concerns from Bicol Saro party-list Rep. Terry Ridon, who said that talks of fuel rationing may prompt people into panic-buying or hoarding gasoline and diesel even if supplies were reported to be enough for at least 50 days.

READ: Ridon warns vs fuel rationing talks: Might scare people into hoarding 

With another round of price increases on Tuesday — the fourth-consecutive week of big time hikes — the country saw diesel prices move to around P140 per liter while gasoline now hovers between P95 to P105 per liter.

The administration has been criticized for its allegedly slow response to the fuel price crisis. In response, Malacañang recently announced that a crisis committee is being finalized to address concerns with supply of fuel and goods.

Last March 25, Marcos signed a bill that will allow him to suspend collection of excise taxes on fuel — amounting to P10 per liter of gasoline and P6 per liter of diesel.

READ: Marcos signs law granting him powers to suspend fuel excise tax 

However, the earliest date that excise taxes could be suspended is on April 12, as the signed bill states that Marcos can only suspend excise taxes if the economic cluster and the energy secretary recommend it once average Dubai crude oil price, based on the Mean of Platts Singapore, exceeds US$80 per barrel for one month.

Due to the Middle East conflict’s effect on the local economy, there are also talks about crafting a new version of the Bayanihan laws used during the COVID-19 pandemic, and a possible supplemental budget to address losses and inflationary impact brought by high fuel costs.

Gatchalian, for his part, said that they will work hard to ensure that the “contingency action plan” of the Senate Protect committee will be implemented, so that the burden experienced by the people may be eased. /das