The establishment of a government-owned crude oil storage facility is being proposed in the Senate amid rising global fuel prices driven by tensions in the Middle East.
Under Senate Bill No. 1993, Francis Escudero is pushing for the creation of a National Strategic Fuel Reserve aimed at mitigating the impact of supply disruptions and volatile oil markets.
The measure proposes an initial funding of P60 billion for the construction of a crude oil tank storage facility. Escudero said the proposed tank farm could store between 90 days’ worth of national consumption, estimated at P30 billion and up to 180 days, equivalent to P60 billion.
The government has projected that the country’s current oil inventory may only last until the end of April, with orders for May delivery still being finalized.
Under the bill, the reserve may only be tapped during severe supply disruptions, sharp increases in global fuel prices, or in the event of a declared state of calamity or emergency. It may also be used for stock rotation and quality management to ensure readiness.
“A strategic crude oil stockpile is our shield,” Escudero said, noting that geopolitical tensions and disruptions in key shipping lanes quickly impact the Philippine economy.
The senator emphasized that the proposed facility would not interfere with private sector operations, but would instead serve as a stabilizing mechanism during extraordinary circumstances.
He added that the controlled release of crude oil during shortages or extreme price spikes would help protect critical sectors such as transport, agriculture, and power generation, while strengthening the country’s position in global market negotiations.
The bill also seeks to establish a Targeted Fuel Relief Program, which would provide direct cash assistance or fuel vouchers to sectors most affected by supply disruptions and price surges.
Beneficiaries would include small farmers and fisherfolk, public transport and delivery drivers, as well as micro and small enterprises reliant on fuel.
“We cannot continue living at the mercy of global events. A modern economy needs a modern safety net. We must catch up,” Escudero said.
