FUEL RESERVE. Motorists form a long line at a gas station on Xavierville Avenue in Quezon City to fill up their gas tanks late March 14, 2022. Camarines Sur Rep. Luis Raymund Villafuerte Jr. on Tuesday (Oct. 10, 2023) said the fuel reserve plan should be pursued side-by-side with the energy department’s promotion of electric vehicles and renewable energy. (PNA photo by Joey O. Razon)
MANILA – A lawmaker on Tuesday urged the Department of Energy to continue pursuing its two-year-old proposal to put up a strategic petroleum reserve (SPR) to shield consumers from oil price volatilities, amid the deadly war between Israeli forces and the Hamas group.
Camarines Sur Rep. Luis Raymund Villafuerte Jr. said the fuel reserve plan should be pursued side-by-side with the DOE's promotion of electric vehicles (EVs) and renewable energy (RE).
Villafuerte was reacting to the decision by Energy Secretary Raphael Lotilla to junk the government's plan to establish an SPR on the grounds that it would be expensive, would not directly lower fuel costs, and would conflict with efforts to promote EVs.
He, however, argued that an SPR could directly affect retail prices because with reserve stocks purchased at a time when global rates are relatively lower, the government can sell its fuel cheaper than the prevailing market rates when global prices are high.
He added that although putting up and maintaining an SPR facility would be expensive, the switch from fossil fuel to green energy and the promotion of EVs are also "equally expensive government proposals.”
"Even if there will indeed be a higher demand for green cars in the coming years, I do not think Filipinos will just retire their vehicles with gas or diesel engines by parking them forever in their garages or driving them to the junkyard once they get hold of their EVs,” he said.
“Carmageddon is the bane of our motorists and commuters not just because of so many newer vehicle models on our roads; there are also cars and other vehicles that are much older, including those that have been around for 40 or 50 years.”
Salceda said the Oct. 7 surprise attack by the Islamist militant group Hamas on Israel could spark a long-drawn-out war in the oil-producing Middle East.
“What option does the DOE have to cushion our people, especially those who experience daily a steady erosion in their purchasing power, the impact of non-stop fuel rates, which has already induced higher transport fares and food prices," he said.
Lotilla was quoted in media reports as saying in a news briefing that the DOE was pursuing the rollout of EVs in support of Republic Act (RA) 11697 or “The Electric Vehicle Industry Development Act.”
With DOE targeting a 50-percent EV penetration by 2040, Lotilla said: “So, 50 percent of our vehicles will be electric, how much would be the demand for oil-based products?” (PNA)
