Energy Secretary Sharon Garin announced on Tuesday, March 24, that the government is moving to procure 1 million barrels of diesel to fortify the country’s fuel inventory amid ongoing global supply concerns.
In an online press conference, Garin revealed that the Department of Energy (DOE), through the Philippine National Oil Co. (PNOC), is working to secure an additional volume estimated to provide roughly one week of supply for the entire country.
Securing the Oil Buffer
The Secretary emphasized that while the current national fuel supply remains "manageable," the cost of building a strategic reserve is high. The procurement of the 1 million barrels is expected to cost the government upwards of P10 billion.
"Hindi po madali kumuha ng buffer because it is very expensive and currently we are trying to purchase 1 million barrels and that’s good enough only for 1 week for the country."
According to Garin, PNOC has already contracted approximately 400,000 barrels, with negotiations for the remaining 600,000 barrels expected to be finalized within the week.
Despite the volatility caused by the ongoing Middle East conflict, Garin assured the public that the Philippines has maintained its fuel security levels.
At the onset of the conflict, President Ferdinand Marcos Jr. announced a supply cushion of 55 to 57 days—a window that has remained stable thanks to consistent deliveries from partner nations.
"Ganun pa rin yung number of days natin kasi may nadagdag na deliveries galing sa ating supplier countries like Korea, Japan, even China," the Secretary noted.
A Call Against Hoarding
While the DOE works to ensure the country "does not run dry," Garin issued a stern warning against market manipulation. She appealed to industries and the public to refrain from illegal practices that could artificially tighten the market.
"Hopefully, we can also appeal to the public and our industries na wala pong profiteering and hoarding because that will really affect the supply of the entire country," Garin stressed.
The DOE maintains that even adding just one or two days' worth of fuel to the national buffer is a "very important addition" to guarantee the country’s energy resilience in the face of international instability.
