THE Philippine government is allocating a substantial P20 billion to significantly enhance the nation’s buffer stock of diesel, a crucial measure to counter supply uncertainties stemming from the ongoing crisis in the Middle East. Energy Secretary Sharon Garin announced the initiative on Tuesday, highlighting the administration’s proactive approach to safeguarding the country’s energy security.
During a virtual press briefing, Secretary Garin revealed that the Philippine National Oil Company (PNOC) is spearheading the effort to secure a maximum of two million barrels of diesel as a strategic reserve.
The projected cost of this substantial buffer stock is approximately P20 billion. The addition of two million barrels of diesel is expected to extend the country’s fuel supply by an additional 10 days, providing a critical cushion against potential disruptions in international oil markets.
Currently, the government, through PNOC, is in the process of procuring an initial one million barrels of diesel, a quantity deemed sufficient to cover five days of national consumption and valued at P10 billion. Garin confirmed that the transaction for the first 400,000 barrels has already been completed, with the fuel sourced from Southeast Asian countries. An additional 600,000 barrels are slated for procurement this week, further bolstering the initial reserve.
This strategic move by the Philippine government underscores its commitment to ensuring energy stability for its citizens and industries. By building a robust diesel buffer stock, the nation aims to mitigate the impact of global geopolitical events on domestic fuel prices and availability, thereby protecting the economy and the daily lives of Filipinos from the volatility of the international oil market.
