MANILA (UPDATE) - The Philippines has enough oil supply for the next 30 days, Energy Secretary Alfonso Cusi said on Wednesday, following attacks in Saudi Arabia's production facilities that reduced global output.
The Philippines has enough supply to "keep the economy running," Cusi said in a press briefing.
“The supply that we have is sufficient to keep our economy running. We have enough inventory to last for 30 days,” he said.
Saturday's attack on Saudi Arabia's oil facility reduced global supply by 5.7 million barrels per day (bpd) or equivalent to 5 percent of global supply, Reuters reported.
Disruption in the world's biggest crude exporter may result in increased costs for petroleum products worldwide, analysts said.
The Philippines' package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which raised excise taxes for petroleum products, among others, has safety measures in place if crude oil price reaches $80 per barrel for more than 3 consecutive months.
The suspension clause provided by the law covers the next scheduled excise tax increase for January 2020.
“That is allowed under the law. 'Yung next increase...Hindi po bababa ang excise, there’s one more increase in January 2020,” Chua said in a press briefing.
However, it is unlikely to happen soon as the price per barrel is currently at $66, Cusi said. Saudi Arabia's energy minister earlier said the country would fully restore oil production output by September.
Meanwhile, the effects of the crude oil disruption in Saudi Arabia, in the form of oil price hikes, may be felt in the country next week, Cusi said. -- with a report from Arianne Merez, ABS-CBN News and Reuters