The Department of Energy (DOE) said the government is considering buying additional diesel fuel through the Philippine National Oil Company (PNOC) to build standby reserves in case of supply disruptions.
The move comes after China temporarily halted exports of fuel products. China currently supplies about 30 percent of the Philippines’ diesel imports, making the decision a major concern for the country’s fuel supply.
Under the proposal, PNOC could purchase up to 3 million barrels of diesel, equivalent to about 15 days of national demand. The Philippines consumes around 33 million liters, or about 200,000 barrels, of diesel per day.
Originally, the government was considering buying only 1 million barrels, but the planned export suspension from China prompted discussions to increase the volume.
The diesel reserves would serve as a contingency supply that can be released to private oil companies if their regular supply contracts are disrupted. PNOC would sell the fuel at cost to recover government funds.
Possible suppliers include South Korea, India, Malaysia, Indonesia, the United States, and Canada. The procurement would be funded from PNOC’s existing budget, with storage costs included in the contracts.
The DOE said the plan is still being refined and will require final approval.
The agency is also coordinating with other government offices to prevent hoarding and panic buying of fuel. Officials are drafting a policy that could give the president emergency powers to address the impact of ongoing global tensions on energy supply.
Fuel prices have already been rising this year. Diesel prices have increased for nine straight weeks, bringing the year-to-date increase to P9.40 per liter, according to the DOE.
Officials said the proposed diesel reserve is meant to strengthen the country’s energy security and cushion the impact of potential supply shocks.
