The Philippine government plans to establish a strategic oil reserve estimated to cost P30 billion, aimed at holding oil supplies for 30 days. This initiative, announced by Energy Secretary Sharon S. Garin, is part of efforts to enhance energy security in the country.
Doubling Existing Reserves
Currently, private companies are required to maintain a minimum of 15 days' worth of oil reserves. The proposed strategic reserve seeks to double this to 30 days, with a long-term goal of extending it to 60 days or more.
We need more feasibility studies to determine what would work best. We also have to consider the logistics of delivering from the site to the gas stations.
Sharon S. Garin, Energy Secretary
- Collaboration with Philippine National Oil Co. and Maharlika Investment Corp.
- Potential sites include Mindanao, Bataan, and Subic for storage facilities.
The Department of Energy (DoE) is evaluating various financing options for the reserve, aiming to avoid tapping into the national budget. The project is bolstered by support from Japan, which has expressed willingness to assist with feasibility studies.
As global oil prices continue to fluctuate, establishing a strategic oil reserve could provide the Philippines with a buffer against price spikes and supply disruptions. This initiative aligns with similar strategies adopted by other nations to safeguard energy resources.