Tuesday, September 18, 2018

Cusi directs PNOC-EC to submit Russian diesel import plan


Published September 17, 2018, 10:00 PM By Myrna M. Velasco

Following last week’s board meeting of Philippine National Oil Company-Exploration Corporation (PNOC), Energy Secretary Alfonso G. Cusi has directed the state-run subsidiary to submit to him the details drawn up on the proposed P3 billion Russian diesel import plan.
 “They had their board meeting (on Tuesday, September 11), so I am now asking them to submit all the details relating to the importation (of diesel),” the energy chief said.
The particular information and implementation plan he wanted fleshed out in the report that PNOC-EC shall lodge at his table will be the timeline of importation as well as the logistics and handling of the products upon reaching the country – and up to the point when these will already be retailed at the pumps.
“I want them (PNOC-EC) to provide me the timeline… like when exactly are they really intending to do the importation,” Cusi stressed.
He added that he is also taking the company to task on how it will eventually carry out the distribution of the diesel fuel as well as trading them to targeted buyers.
“I want everything, all information related to the importation – because they cannot just order and will not know later on how to distribute it across the chain,” Cusi said.
The energy secretary explained that he is requiring all these details because he wants to ensure that this is also done within the legal bounds and the juggernaut of the deregulated state of the Philippine oil industry.
PNOC-EC previously apprised media that it will be spending P2 billion to P3 billion on the diesel importation undertaking – which it previously targeted to be sourced from Russia. The main target market for the diesel imports will be the public utility vehicles (PUVs) as well as industries.
The DOE though is more open-minded when it comes to fuel sourcing, that if government-sanctioned importation is really warranted, it opined that procurement options shall not just be limited to Russia.
Product pricing and fuel quality standards are other concerns being raised by the downstream oil industry players – especially with pronouncements from the DOE on optional sale of Euro-2 fuel at the pumps.
The Russia diesel importation is an alternative that even Malacanang has also contemplated upon as fuel prices have been continuously making dent on consumers’ pockets.

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