Philippines Seeks Strategic Petroleum Reserves Amid Geopolitical Tensions
The Philippine government is seeking to create strategic petroleum reserves as a buffer against supply disruptions and volatile global oil prices. Senator Erwin Tulfo has urged the Department of Energy (DOE) and the state-run Philippine National Oil Co. (PNOC) to hasten the establishment of these reserves, which should include storage hubs backed by Saudi Arabia and the United Arab Emirates (UAE).
The DOE has been monitoring the downstream oil industry since the outbreak of the war in February and has required oil companies to submit data on their importation and refining operations. This information is being used to assess and validate movements in gasoline and diesel prices.
DOE Director Rino Abad said that a Philippine Strategic Petroleum Reserve team has been created, and a concept note for the country's proposed reserve system has been submitted to Japan's Ministry of Economy, Trade and Industry for review. A separate proposal has also been submitted to Saudi Arabia, which is considering establishing an oil hub in the Philippines.
Under the Saudi proposal, the facility would be commercially operated but would give the Philippines a reserve right to petroleum products during emergencies. The UAE has offered to finance and construct an oil storage depot in the Philippines, with the Philippines receiving priority access to the stored fuel in the event of a supply crisis.