PIA Press Release
Tuesday, January 17, 2012

Iran tension upping international oil price

QUEZON CITY, Jan 17 (PIA) -– Prices of oil in the world market continue to be affected by Iran’s threat to disrupt the flow of a big part of the world’s oil supply.

This was revealed by Energy Undersecretary Zenaida Monsada for Oil Industry Management Bureau in a radio interview recently.

Monsada said a big part of the world’s crude supply will be partially disrupted if Iran pushes through with its plan to halt the travel of 30 percent of oil carrying sea cargos via the Strait of Hormuz.

“80 percent of the Philippines’ oil supply is passing through the Strait of Hormuz,” she said.

To address the possible oil supply problem, she said the energy department has encouraged the oil companies in the Philippines to source their supply from other countries not affected by the Iran tension.

For diesel alone, the DOE monitored the prevailing price in Metro Manila last week at P42.84 to P46.46 per liter.

Monsada also revealed that the energy department is also looking into other measures that will help bring down the local price of oil. Part of which is the installation of the Independent Review Committee that will check the level of profitability of oil companies.

For this purposes, she said Energy Secretary Jose Almendras has invited people who are doctors of philosophy and economics, professors of universities, and those from the business, transport, and other sectors to be a part of the committee.

Monsada believes that the committee will be instrumental in benchmarking the reasonable profit for the oil industry.

“With this, maybe we could give a guideline on what profit is reasonable for the oil industry,” she said.

Meanwhile, Monsada denied earlier reports, saying, Almendras has declared the rationing of oil supply in the country. She pointed out that the government has no capacity to import and distribute oil. (RJB/ DBNV/ PIA-NCR)