anila: DOE warns of fuel crisis in RP

www.manilatimes.net Saturday, March 1, 2003 By Maricel E. Burgonio, Reporter

WITH oil prices hitting all-time highs, the Department of Energy yesterday warned the country is facing a fuel crisis and urged the people to help reduce consumption through energy conservation.

Energy Secretary Vincent Perez Jr. predicted that oil prices would remain volatile until the second quarter of the year due to tension over Iraq and the recent prolonged strike in Venezuela.

In a statement, Perez said the combined factors of historic low oil inventories in different countries and supply problems due to the Venezuela strike are expected to keep prices unstable.

He added an extraordinary increase in demand for oil in the US,  given the already tight supply, would also exert pressure on oil prices.

 “We are again faced with a crisis as we see oil prices increasing to recent all-time highs. This is a crisis affecúting not just the country but the rest of the world,” Perez said. “But like any crisis, this is just temporary. I appeal to our consumers to become more prudent in the use of gas at this time until the situation has eased.”

The DOE said Dubai crude, the benchmark for local oil pricing, reached its peak in two years last Tuesday to $31.18 per barrel. For February, the price of Dubai crude  averaged $29.96 per barrel from $28.02 in January.

 Investment bank JP Morgan reported that political risks remain high and oil prices are likely to go up until the situation in Iraq is resolved.

Perez urged the public to make adjustments in their consumption, such as taking the MRT instead of driving to the office. Car owners should consider car-pooling, he said.

Perez also encouraged government agencies and private firms to provide shuttle service to their employees that could bring them directly to various points..

At the same time, Perez appealed to lawmakers and other groups to refrain from issuing unnecessary statements that only further confuse the issues. Instead, the Energy chief asked their support to educate consumers to conserve gas.