Record-low peso threatens higher power bills, fuel prices

National

FILIPINO households could face a double squeeze as the peso hits record lows against the US dollar, threatening to push up both electricity bills and fuel costs.

Energy Secretary Sharon Garin said the currency’s depreciation could raise the cost of imported coal, diesel and liquefied natural gas (LNG), exposing the country to further increases in energy prices amid the global oil crisis and the looming El Niño threat.

The peso breached the P64-per-dollar level for the first time in intraday trading yesterday, extending its run of record lows and raising concerns over the cost of dollar-denominated energy supplies.

The Department of Energy (DOE) is exploring measures to cushion the impact of the weakening currency and continued market volatility.

Garin said she would meet with Energy Regulatory Commission chairman and CEO Francis Saturnino Juan to discuss possible regulatory measures to prevent abrupt increases in electricity bills.

The peso’s decline has already contributed to higher electricity rates this month in Metro Manila and nearby provinces, where some power supply contracts are denominated in dollars.

For petroleum products, the DOE is considering staggered price adjustments to help ease the burden on motorists.

“We’ll ask them (oil companies) again once we see the computations this week. Normally, they follow, but hopefully, it won’t be necessary anymore,” Garin said in a Philstar report.

For this week, the DOE prescribed maximum price increases of P1.20 per liter for diesel and P0.50 per liter for kerosene. Gasoline prices, meanwhile, declined by at least P0.30 per liter.

Garin made the remarks on the sidelines of the Singapore International Energy Week, as the government considers ways to manage the potential impact of currency movements on domestic energy costs.(MyTVCebu)