The Department of Energy (DOE) and representatives of the downstream oil industry have reached an agreement to implement a staggered increase in fuel prices.
This move responds to the global surge in oil prices driven by escalating tensions in the Middle East due to the conflict between Israel and Iran.
DOE Officer-in-Charge Sharon Garin explained that the approach is aimed at cushioning the immediate impact of rising prices, particularly on the transport and agriculture sectors.
The DOE also urged oil companies to expand fuel discount programs for the transportation sector, with discussions on the matter set for June 25.
Undersecretary Alessandro Sales pointed out that speculative trading, rather than an actual supply shortage, is the primary driver of current fuel price spikes.
Meanwhile, Garin is scheduled to meet today, June 24, with the Departments of Transportation and Agriculture to prepare potential subsidies for drivers and farmers if prices exceed $80 per barrel.