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DOE: No oil price hike despite shutdown of Makati pipeline


Amid fears of a fuel shortage with the temporary shutdown of the pipelines of First Philippine Industrial Corp. (FPIC), the Department of Energy assured the public Friday there will no price hike in fuel products, at least for now. DOE Secretary Jose Rene Almendras also said contingency plans are now being implemented to sustain fuel supplies in Manila while the pipelines are closed. "Hindi naman. As of now wala tayong ganyan to that effect (There is no such thing for now. As of now we have no signs indicating a fuel price hike)," Almendras said in an interview on dzBB radio when asked about a possible oil price hike. He admitted they are concerned that the prolonged shutdown of the pipeline may result in a shortage of fuel supply. Almendras assured the public, however, that "we have enough fuel for the next few days." "Maapektuhan po dahil yan ang pinakamabilis at malaking volume ng gasolina at diesel fuel dumadaan sa pipeline na yan (The shutdown will likely affect our fuel supplies because a big volume of gas and diesel pass through the pipelines)," he said. "Yan ang contingency pero problema natin sa Metro Manila napakalakas (magkonsumo). Kukulangin ang volume kahit paandarin natin lahat na trak," he added. (Our contingency plans are in place but Metro Manila consumes so much fuel the transport of fuel via tankers may not be enough)," he added. Radio dzBB had reported that the pipeline had been closed since Thursday. Geologists have located before dawn on Friday the source of a gas leak in the pipeline of the FPIC in Makati City. However, geologists said while the defective portion of the pipe can be repaired within the day, they still have to look for other possible defective portions. "Yung butas sa tubo 100 meters southeast of West Tower, along South Superhighway ... Kagabi pa, ngayon lang nahubaran nang buo ang tubo, ngayon lang nakita nang malinaw," Carlo Dayanghirang, one of the geologists working on the pipe since Thursday night, said in an interview on dzBB radio. (The defective part was found 100 meters southeast of West Tower, along South Superhighway. We had been working on this since Thursday night but it is only now that we saw the actual defective portion.) Not sure when pipeline will be reopened Almendras said there is no specific timetable when the pipeline would be reopened. "Hopefully we will be able to finish that before we reach critical level of fuel," he said. In the meantime, he said fuel firms affected by the shutdown are now using tankers to bring fuel from their refineries in Batangas to their depots in Manila. Almendras added they are keeping watch over the supply of fuel, noting a shutdown caused by a gas leak at nearby West Tower Condominium forced gas stations near the condominium to close down for a few days. On Thursday, FPIC, which was blamed for a gas leak in Makati City, voiced fears shutting down its pipelines could trigger a fuel shortage in Metro Manila. The Lopez-owned firm supplies 50 to 60 percent of fuel used in Metro Manila, said FPIC president Leonides Garde. Authorities discovered a leak at the basement of the West Tower condominium in July but it was only on Thursday that excavation work around the area started. FPIC has two pipelines running underground, carrying gasoline, diesel, kerosene, and aviation fuel from refineries in Batangas to oil terminals in Pandacan and in Parañaque. Two of FPIC's largest clients are oil giants Chevron Philippines and Pilipinas Shell. Decision of the Makati City government Almendras said they will respect the decision of the Makati City government to shut down the pipeline while the defective portion is being repaired. He said they will wait for FPIC and its contractor to finish the excavation. However, he appealed to the Makati City government to allow the reopening of the pipeline if there is no defective portion found. "(Pakiusap namin), buksan for a few hours para ma-refill ang Pandacan (We were hoping the pipeline could be opened a few hours just so the Pandacan depots can be refilled)," he said. Possible charges Meanwhile, Almendras cited that charges could possibly be filed against FPIC and the oil companies. "It will partly be FPIC and partly oil companies. Sila ang may-ari ng pipeline, sila nagpo-provide ng serbisyo (Charges may be lodged against FPIC and maybe the oil companies, but the FPIC is the owner of the pipeline and provides the services)," he said. –VVP, GMANews.TV

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