MANILA – Senator Francis Escudero has proposed Limay, Bataan as the site of a government-owned fuel storage facility under a bill seeking to establish a national strategic petroleum reserve.
Escudero filed on Wednesday Senate Bill No. 1993, which aims to create a National Strategic Fuel Reserve system to strengthen energy security and cushion the impact of global oil supply disruptions.
The proposed facility will have the capacity to store 90 to 180 days of national fuel consumption to help stabilize supply and mitigate price shocks.
“The area’s deep-water port and proximity to the country’s only refinery make it a practical site,” Escudero said.
Under the measure, the Department of Energy, in coordination with the Philippine National Oil Company, will oversee the construction, management, and operation of the fuel reserve, including procurement, storage, and distribution.
The bill provides for a Targeted Fuel Relief Program that will extend cash aid or fuel vouchers to sectors affected by supply disruptions and price spikes, including farmers, fisherfolk, transport workers and small businesses.
“A strategic crude oil stockpile is our shield,” he said.
Escudero said the proposed reserve would serve as a stabilizing mechanism during extraordinary circumstances, allowing the government to release fuel during shortages or extreme price increases.
“We must catch up,” he added.
The measure authorizes an initial PHP60 billion for the construction of the facility and mandates maintaining fuel reserves to ensure long-term supply stability. (PNA)