National petrol reserve pushed amid Middle East crisis

MANILA, Philippines — A national petroleum reserve was proposed to protect the Philippines from fuel supply disruptions and price spikes linked to global crises.

Senate President Tito Sotto filed Senate Bill 1934, or the Philippine Strategic Petroleum Reserve Act, amid the Middle East conflict that has sent global oil prices soaring.

In the bill's explanatory note, Sotto said the Philippines remains heavily dependent on petroleum products for transportation, agriculture, power generation and other sectors.

"This structural dependence exposes the country to external supply shocks arising from geopolitical conflicts, regional instability, maritime disruptions, sanctions regimes, climate-related disasters, and speculative volatility in global oil markets," Sotto said.

He noted that the country does not maintain a well-placed, state-managed petroleum reserve that could cushion prolonged supply disruptions.

The absence of such a reserve leaves the country vulnerable to fuel price spikes, transportation and logistics disruptions, power instability and inflationary pressures, he said.

Proposed 90-day fuel reserve

Under the proposed law, the Department of Energy (DOE) would manage a petroleum reserve with stocks that can last at least 90 days of the country's average national consumption.

The reserve would include crude oil and refined petroleum products, such as diesel, gasoline, jet fuel and liquefied petroleum gas, as well as other energy products.

The fuel stocks would be distributed across different parts of the country to ensure availability during emergencies. A Strategic Energy Security Council, composed of representatives from various government agencies, would oversee such system.

Funding for the program would come from the DOE's budget, according to the bill.