The Consunji-led DMCI Holdings Inc. is facing growing concerns over a possible oil shortage, as several suppliers have backed out and remaining ones cannot guarantee deliveries starting April.
Company chairman Isidro A. Consunji warned that the situation could become worse than the pandemic, as it directly affects fuel supply needed for transportation and daily operations. He said a disruption in fuel deliveries could impact food distribution and drive inflation, especially in urban areas like Metro Manila.
Maria Cristina C. Gotianun, vice chairman of DMCI and president of Semirara Mining and Power Corp., said the company is scrambling to secure whatever fuel is available. However, reduced supplier commitments have already limited their supply.
Semirara relies heavily on fuel to run trucks and heavy equipment used in coal mining. Without oil, operations could slow or stop entirely. The company currently supplies about 38% of the country’s baseload power, meaning any disruption could reduce electricity supply and push power prices higher.
Gotianun said the company has no backup plan if fuel runs out and is hoping the government can help secure supply if the situation worsens.
DMCI is also reviewing its spending plans for the year due to uncertainty. Chief financial officer Herbert M. Consunji said the main issue is not cost but availability, noting that even with funds, fuel may not be accessible.
Meanwhile, DMCI’s cement unit, Concreat Holdings Philippines Inc., has begun raising prices in phases since mid-March, passing on higher fuel costs to customers.
