The situation, in brief
The government is eyeing a property owned by the Philippine National Oil Company (PNOC) in Bataan as the site for the country’s first Strategic Petroleum Reserve, with the Maharlika Investment Corporation set to help finance the initiative, a senior Palace official revealed Saturday.…
The government is eyeing a property owned by the Philippine National Oil Company (PNOC) in Bataan as the site for the country’s first Strategic Petroleum Reserve, with the Maharlika Investment Corporation set to help finance the initiative, a senior Palace official revealed Saturday.
Undersecretary Erwin Sta. Ana of the Office of the Executive Secretary told DZRH News program Special on Saturday on June 6 that the Bataan site and Maharlika financing are among the concrete steps the government is now taking to build the country’s own resilience against oil supply shocks.
“We’re looking at an initial additional 30 days of combined reserve coverage, maaaring crude oil o finished products na diesel and gasoline. May tinitingnan tayo ngayon na property ng PNOC sa Bataan na we can probably put it up,” Sta. Ana said.
The Strategic Petroleum Reserve program aims to establish a government-held buffer stock that would shield the Philippines from future oil supply disruptions linked to geopolitical tensions, particularly the ongoing conflict in the Middle East, which has driven fuel prices sharply higher over the past months.
At present, the country’s fuel inventory stands at roughly 45 to 50 days, maintained primarily by private oil companies under mandatory stock requirements, Sta. Ana said, with the proposed reserve intended to add an additional layer of protection on top of existing commercial inventories.
The Department of Energy (DOE) announced on June 1 a landmark partnership with Japan to advance the development of the reserve system, with cooperation covering feasibility studies, capacity-building, and possible Japanese participation in engineering, procurement, construction, and financing of stockpiling infrastructure.
The initiative falls under the Partnership for Wider Energy and Resources Resilience in Asia, or POWER Asia, and was among the key outcomes of President Ferdinand Marcos Jr.’s state visit to Japan on May 28, where he and Japanese Prime Minister Sanae Takaichi reaffirmed their commitment to energy security and supply chain resilience.
Beyond the national reserve, the Philippines is also participating in discussions on an ASEAN-wide joint stockpiling mechanism, and has offered to host regional stockpiling facilities as ASEAN Chair this year, the DOE said.
Energy Secretary Sharon Garin said the program is intended to ensure continuity of fuel supply during emergencies and is not designed to replace the role of private industry in the country’s deregulated downstream oil sector.
“This is about protecting the continuity of supply. It is about ensuring that Filipinos can have confidence that fuel will remain available when they need it, even during periods of global uncertainty,” Garin said.
