‘Leverage ASEAN chairship to promote regional energy security’

MANILA, Philippines — Energy Secretary Sharon Garin is urging the government to leverage the Philippines’ chairship of the Association of Southeast Asian Nations (ASEAN) this year to promote regional energy security in light of the global oil crisis.

“In times like this, we can strengthen our community, we can protect ourselves and because there are oil-producing countries [in the region], we can do sharing within the region,” Garin told One News’ “The Big Story” Wednesday night.

“It’s not really predictable in the sense that whatever happens with the rest of the world that we’re not involved in, the Philippines is affected and the ASEAN region is affected,” she stressed.

Garin made the comment after President Marcos said the Philippines is negotiating with other oil-producing countries to diversify its options and reduce the country’s exposure to price volatility.

In the event of fuel shortages, though, the Philippines can activate the ASEAN Petroleum Security Agreement, signed in Cha-am, Thailand, in 2009. It builds on the ASEAN Energy Cooperation and ASEAN Petroleum Security Agreement, inked in Manila in 1986.

Meanwhile, Bayan Muna, through its chairman Neri Colmenares, submitted a letter to Garin asking the Energy Department to oblige oil companies to unbundle the costs of their fuel products.

Inflation

On Wednesday, ING Think warned that the Philippines would experience higher oil prices more quickly than neighboring countries, such as Indonesia and Thailand, due to its “modest fuel buffers, rapid domestic price pass-through and structurally wider current account deficit.”

“The strain is already visible, with several local governments shifting to four-day workweeks in response to the recent surge in fuel costs,” Deepali Bhargava, regional head of research for Asia-Pacific, wrote in a commentary.