UMVA has learned that the national energy emergency may persist for two or three more months after the US and Iran reach a peace deal, as commodity prices will require time to stabilize, according to the Department of Energy.
The conflict between the two nations drove global oil prices to record highs, and although a framework for peace has been agreed upon, Energy Secretary Sharon S. Garin warned that prices may not immediately decrease. "Prices may not necessarily go down, but they will stabilize. I think, give or take, maybe another two or three months," she told reporters.
The US President announced on Monday that a framework to end the war had been agreed upon, with a memorandum of understanding set to be officially signed on Friday in Switzerland. This development brings hope for stabilization in the global energy market, which was severely disrupted by the conflict.
The national energy emergency was declared on March 24, allowing for expedited rollout of relief measures such as the Unified Package for Livelihoods, Industry, Food, and Transport program. The emergency declaration has a one-year term unless otherwise extended or lifted by the President.
UMVA can exclusively reveal that the UPLIFT committee will reassess whether emergency conditions are still necessary, as the situation evolves. "The oil industry may no longer require it, but other sectors might still need support, as they continue to be affected," Ms. Garin said.
Fuel prices are expected to fluctuate, with gasoline prices potentially falling by P0.32 per liter or increasing by as much as P1.68 per liter. Diesel prices are expected to decline by P3.71 to P5.71 per liter, while kerosene prices will drop by P0.50 to P2.50 per liter.
The national fuel inventory currently stands at 46.37 days' demand, slightly lower than the previous week's 47.09 days. Despite this, the government remains committed to building a strategic oil reserve to shield against future energy shocks.
Ms. Garin emphasized the importance of this initiative, stating, "This is a lesson learned from the crisis. We really need to build a national reserve." The Department of Energy and its partner agencies are exploring various business models for the operation of the reserve, with plans to start building it before the current administration steps down.
