DOE Speaks on Oil Price Hikes Starting January 2021
OIL PRICE HIKES – An official of the Department of Energy (DOE) confirmed the possibility of the continued increase in oil prices until May.
Starting January, a lot of people are struggling to cope with the continuous increase in the prices of oil. The series of oil price hikes make a lot of individuals find it hard to stay within their budget as the prices went up every week. The drivers of public utility vehicles (PUVs) are among those who are greatly affected by the increases.
The same scenario took place in the last quarter of 2020. Transport groups even called for assistance from the national government as they can barely bring home some money due to the high prices of oil, the limited seating capacity, and the reduced number of commuters amid the pandemic.
The national government gave the eligible drivers fuel assistance. the capacity in jeepneys was also reverted to a normal setting. However, it seems that another challenge is up on the surface as the oil price hikes may continue until May or June.
Based on a report on ABS-CBN News, Department of Energy-Oil Industry Management Bureau director Attorney Rino Abad said that the oil price hikes may continue until May or June due to the insufficient supply of oil worldwide.
Abad stressed that the oil price increases started this 2021 and it is because there was no quarter in 2020 when there was no shortage in the supply of crude oil in the international market. According to him, during the 3rd quarter, the shortage reached more than three (3) million.
Based on the report, the DOE Official further expressed that the total shortage in crude oil supply in 2021 yielded an average of 1.85 million barrels per day. Meanwhile, he shared that the Organization of Petroleum-Exporting Countries o OPEC said that they will try to help to ease the problem on the supply of crude oil.
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