DOE: Energy emergency may be lifted in third quarter

Sharon Garin

The government may lift the state of national energy emergency in the third quarter of the year once the global market sees more positive developments on oil supply flows and prices.

Energy Secretary Sharon Garin said in a radio interview on Tuesday the Department of Energy (DOE) has yet to recommend the move even amid progress in peace talks between the United States and Iran.

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Top officials of both countries are expected to formally sign a deal to end the Middle East conflict on Friday.

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“The effects of this crisis on us aren’t over yet. Some of our commodity prices are still affected,” Garin said.

But the DOE secretary was optimistic that the state of energy emergency would not last for a year. Still, she clarified that the decision to lift it does not depend only on recommendations from her department.

“We just need time for things to settle and for prices to stabilize. Prices may not necessarily go down, but at least they should stabilize. I think, give or take, maybe another two or three months,” Garin said.

Lingering effects

On Monday, Energy Undersecretary Alessandro Sales said that local oil prices may return to their prewar levels in six to 12 months if the peace deal in the Middle East holds.

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Almost a month after the United States and Israel launched military attacks on Iran on Feb. 28, President Ferdinand Marcos declared a state of national energy emergency as the country grappled with soaring pump prices amid the escalating conflict in the oil-producing region.

The status is expected to remain in force for one year, unless extended or lifted by Mr. Marcos.

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Under the energy emergency state, the DOE has the power to limit price hikes as well as set the minimum price rollbacks that fuel retailers can implement.

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