Senator Escudero Files Bill for National Petroleum Reserve to Enhance Fuel Security
Senator Francis Escudero has introduced legislation aimed at establishing a government-owned crude oil storage facility to strengthen the Philippines' fuel security amid growing global supply risks. The proposed measure, Senate Bill 1993, seeks to create a national petroleum reserve capable of storing 90 to 180 days' worth of the country's oil requirements, with an estimated construction cost of up to P60 billion.
Addressing Import Dependence and Global Vulnerabilities
The Philippines currently imports approximately 90 percent to 95 percent of its crude oil and refined petroleum needs, making the nation highly susceptible to global price fluctuations and supply chain disruptions. In a formal statement, Escudero highlighted escalating geopolitical tensions in the Middle East, including attacks on critical energy infrastructure and disturbances in vital shipping routes like 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," the senator emphasized.
Proposed Facility Details and Management Structure
The bill allocates an initial P60 billion for constructing the fuel reserve facility. The Department of Energy, in collaboration with the Philippine National Oil Company or its designated subsidiary, would oversee procurement, storage, maintenance, and distribution of the strategic reserves. Energy Secretary Sharon Garin recently noted that current oil inventory levels may only last until the end of April, with May supply orders still being arranged.
Escudero proposed Limay, Bataan, as the preferred site for the facility, citing its deep-water port capabilities and proximity to the Petron Bataan Refinery, the country's sole operating oil refinery.
Comprehensive Fuel Relief Program Included
The legislation also incorporates a targeted fuel relief program designed to provide cash assistance or fuel vouchers to sectors most severely impacted by oil price spikes or supply disruptions. These vulnerable groups include farmers, fisherfolk, transport operators, delivery drivers, and small businesses that rely heavily on fuel for their 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," Escudero explained.
International Comparisons and Strategic Importance
The senator noted that numerous 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. Despite its heavy dependence on imports, the Philippines remains one of the few major Asian economies without a strategic petroleum reserve.
Escudero emphasized that the proposed reserve would serve as a crucial buffer against supply shocks, refinery shutdowns, and extreme price increases without disrupting private sector operations. The facility would provide the government with essential tools to mitigate economic impacts during global energy crises.
