SEN. Francis Escudero has filed a bill seeking to establish a government-owned crude oil storage facility to strengthen the Philippines’ fuel security amid global supply risks.
In Senate Bill 1993, Escudero proposed the construction of a national petroleum reserve capable of storing 90 to 180 days’ worth of the country’s oil requirements, with an estimated cost of up to P60 billion.
The Philippines imports about 90 percent to 95 percent of its crude oil and refined petroleum needs, making it highly vulnerable to global price swings and supply disruptions, the senator said.
In a statement, Escudero cited rising geopolitical tensions in the Middle East, including attacks on energy infrastructure and disruptions in key shipping routes such as the Strait of Hormuz, which have triggered volatile oil prices across Asia.
“Even temporary disruptions in the Strait of Hormuz have immediately sent fuel prices soaring in the Philippines, with cascading effects on transport, food logistics and power generation,” he said.
The proposed measure allocates an initial P60 billion for the construction of a fuel reserve facility. The Department of Energy, along with the Philippine National Oil Company or its subsidiary, will oversee the procurement, storage, maintenance and distribution of the reserves.
Energy Secretary Sharon Garin earlier said current oil inventory may only last until the end of April, with May supply orders still being arranged.
The bill also includes a targeted fuel relief program that would provide cash aid or fuel vouchers to sectors most affected by oil price spikes or supply disruptions. These include farmers, fisherfolk, transport operators, delivery drivers and small businesses reliant on fuel.
Escudero said the proposed reserve would serve as a buffer against supply shocks, refinery shutdowns and extreme price increases, without disrupting private sector operations.
“By releasing crude during shortages or extreme price spikes, the government would be able to protect essential sectors such as transport, agriculture and power generation,” he said.
The senator noted that many countries, including the United States, Japan and members of the International Energy Agency, maintain oil reserves equivalent to at least 90 days of net imports.
He added that the Philippines remains one of the few major Asian economies without a strategic petroleum reserve despite its heavy dependence on imports.
Escudero proposed Limay, Bataan, as the site for the facility, citing its deep-water port and proximity to the Petron Bataan Refinery, the country’s only operating oil refinery. (KOC)