Just a few days ago, a collective sigh of relief swept through the city, especially on transport terminals and private garages here. We witnessed what can only be described as a “big” rollback—a huge P20.89 per liter slashed from diesel, and P4.43 from gasoline. For the average fixed-wage earner, this wasn’t just a few pesos added to the wallet, it took out some burden from their worries, a respite from days of budgeting and counting coins.
But as I sit to write this, the air remains thick with uncertainty. While the Department of Energy (DOE) has taken the step of “price setting” under a state of national energy emergency, the continuing trouble of the Middle East looms large. The report of ongoing naval blockades in the Strait of Hormuz have sent global crude benchmarks on a tailspin, briefly touching $150 per barrel.
The controversial Strait of Hormuz, this body of water that has now enriched our understanding of geopolitics, is a narrow waterway that connects the Persian Gulf (to its west) with the Gulf of Oman and the Arabian Sea (to its southeast).
Geographically, it separates Iran to the north from the United Arab Emirates and the Musandam enclave of Oman to the south. It is what polical and economic experts coin as the “jugular vein” of the global energy market.
So, do we dare hope for more rollbacks? We close our eyes tight, clasp our hands and pray. The reality is a balancing act, according to energy officials.
The recent reductions felt in the market were a “gift” from a temporary cooling of tensions and a strategic ceasefire announcement. As Energy Secretary Sharon Garin noted, this is not a guarantee of a trend. We are currently beneficiaries of a “physical-futures disconnect,” where the government is leveraging stable national reserves (currently at a 50-day inventory) to buffer us from the immediate shock of the war.
Despite this, there is a silver lining for the “coming days.” The DOE’s aggressive move to invoke the Downstream Oil Deregulation Law’s emergency provisions means the government is no longer a passive observer. A report from the Philippine Daily Inquirer said that by requiring prior notification and unbundled pricing, they are squeezing the “fat” out of corporate margins to ensure that any slight dip in the world market is immediately felt at the local pump. We hope this truly happens.
We know all too well that while fuel prices surge, the prices of basic commodities rarely moves down. For our office clerks, teachers, and service workers—the backbone of our economy who live on a fixed monthly wage, the “inflationary hangover” is real. When diesel spikes, the price of a kilo of rice or a pack of bulad follows suit, but prices go down in slow motion when the rollback arrives.
To protect the purchasing power of the Filipino family, we are forced to look beyond the gas station. In some conversations and opinion articles, some measures were discussed and we tried to look at some doables. Here are a few to-dos that might mitigate this crisis. The government’s current P10 per liter fuel subsidy for PUVs is a start, but it could very well be expanded. A more robust “Pantawid Pasada” for drivers to ensure they don’t pass the cost to commuters is raised in this concept.
We turn our attention to the possibilty of making Kadiwa centers work in every district. By limiting the supply chain and bringing produce directly from our farmers in Marilog or Bukidnon to the urban centers, we bypass the middleman costs that are often bloated by “transportation surcharges.”
It is time to revisit social packages for low wage earners. Temporarily reducing SSS or PhilHealth deductions for those earning below a certain threshold during energy emergencies could provide immediate, relief without the controversial cash aid rollout.
For the long term, we cannot remain hostage to global turmoil. We have to hasten the transition to electric public transport and other green activities like bikes within the downtown area. Or, we can make our sidewalks become more pedestrian-friendly. This can alleviate traffic congestion and sustain a healthy lifestyle.
Most of us have noticed the “silence” of the streets last week. It painfully made us look back at the COVID-19 pandemic on a lighter scale. Some schools are already thinking of changing the modality to allow asynchronous classes should the situation worsen. As we prepare for the coming weeks, the prospect of more rollbacks remains “guarded.” We may see marginal decreases as the government continues to play with oil players, but the global “war premium” isn’t going away overnight.
For now, we take the P20 rollback as a breathing spell. But as we exhale, let us demand changes that ensure our survival isn’t dictated solely by events happening at the other side of the globe. For us working to put food on the table each single day, responding to the basic needs of the family is truly all that matters.
