The Philippine government has allocated P20 billion to purchase up to two million barrels of diesel as part of efforts to strengthen the country’s fuel reserves amid uncertainties in global oil supply.
Energy officials said the move aims to establish a diesel buffer stock that could help cushion the impact of potential supply disruptions, particularly as tensions in the Middle East continue to influence global fuel markets.
According to the Department of Energy, the Philippine National Oil Company (PNOC) has already begun acquiring diesel for the reserve. Initial purchases include 400,000 barrels, with additional deliveries expected in the coming weeks as procurement continues.
Once completed, the planned two-million-barrel stockpile would provide roughly 10 days’ worth of diesel supply for the country. Authorities said this reserve will serve as an emergency buffer that can be released if supply disruptions or sharp price spikes occur.
Energy Secretary Sharon Garin said the initiative is meant to ensure the Philippines has additional fuel available if global supply chains are affected by geopolitical tensions or other disruptions.
The government also plans to diversify its fuel sources by exploring supply options from different regions, including North America, South America, and Australia. Officials said broadening supply partners will help reduce dependence on a limited number of suppliers.
While the country currently maintains about 45 days of fuel inventory, the government believes establishing a strategic diesel reserve will strengthen energy security and help protect the transport sector and other industries that rely heavily on diesel fuel.