Establishment of petroleum reserve eyed-A A +A
Thursday, June 9, 2011
A PARTY-LIST lawmaker Wednesday pushed for the establishment of a national strategic petroleum reserve to secure the supply of petroleum products during a crisis or emergency.
LPGMA party-list Rep. Arnel Ty, in House Bill 4526, explained that the reserve shall store refined or ready-to-use petroleum products such as gasoline, diesel and liquefied petroleum gas.
It directs the Philippine National Oil Corporation (PNOC) “to operate, manage and administer by itself the reserve in partnership or joint venture with other parties and shall likewise formulate strategies for petroleum shortage prevention; monitor and determine the volume of petroleum products needed to keep the reserve adequate and manage the reserve to ensure that petroleum product needs are met by releasing supplies to the public, either directly or through private distributors when the need arises.”
The lawmaker said social upheaval and political unrest in oil-producing countries have revived fears of possible disruptions to and reductions in the global production and supply of crude oil. "Regardless of the conditions in oil-producing regions, there is really a need for us to establish an emergency reserve supply of finished petroleum products to secure the country's requirements estimated at an equivalent of 300,000 barrels of oil per day.”
HB 4526 also stated that the PNOC shall set the prices of petroleum products originating from the reserve based on current market standards; exercise the right to eminent domain as may be necessary for the purpose of establishing the reserve; enter into contracts with any person or entity by way of purchase, lease or rent and to provide funds for the maintenance of the reserve; increase the capacity of the reserve; and replace refined petroleum products that are about to degrade. (CGC)
Published in the Sun.Star Bacolod newspaper on June 09, 2011.