The Department of Energy (DOE) is studying additional measures to mitigate and delay the impact of the peso’s depreciation against the US dollar on the country’s energy costs.
Energy Secretary Sharon Garin acknowledged that a weaker peso would increase the cost of importing coal, diesel, and liquefied natural gas (LNG), potentially putting additional pressure on electricity and fuel prices.
Garin said she would meet with Energy Regulatory Commission (ERC) Chair Francis Saturnino Juan to discuss possible measures to ease the effects of the peso’s continued depreciation on the energy sector.
Garin also said she would once again urge local fuel retailers to implement staggered price increases for petroleum products to help cushion the impact on consumers.
Under a staggered approach, fuel price adjustments would be implemented gradually rather than all at once, potentially easing the immediate burden on motorists and other fuel consumers.
Garin said the government was doing everything it could to mitigate the impact of rising energy costs, particularly as the country continues to face the effects of the El Niño phenomenon.
The weather phenomenon could drive up electricity demand, potentially resulting in higher power bills and an increased risk of power outages.
The DOE is exploring possible measures to manage these challenges as the weaker peso raises import costs and the country faces the additional pressure of increased electricity demand.