The Philippine government is allocating P20 billion to strengthen the country’s diesel buffer stock amid uncertainties in supply caused by the ongoing Middle East crisis, Energy Secretary Sharon Garin said.
Speaking at a virtual briefing, Garin said the Philippine National Oil Company (PNOC) aims to secure a maximum of two million barrels of diesel, which would add an additional 10 days’ worth of national fuel supply.
Currently, the government is procuring an initial one million barrels of diesel at a cost of P10 billion, enough to cover five days of nationwide demand.
The first 400,000 barrels have already been sourced from Southeast Asian countries, while the remaining 600,000 barrels will come from outside the region, still under negotiation, Garin said.
According to the Energy Department, the country’s average fuel inventory currently provides 45 days of supply. The diesel buffer will eventually be sold to fuel retailers to supplement supply, though Garin emphasized that companies do not need it at present.
“It’s better to have little than none,” she said, adding that the priority for distribution will be the public transport system, as most Filipinos rely on it.
Garin also said the government is diversifying sources of diesel, engaging suppliers in Canada, North and South America, and Australia, while noting limitations in lead time for deliveries.
“The government is building this reserve to ensure that we have a buffer in case of supply disruptions,” she said.
