The Philippine government is set to purchase 2 million barrels of oil to strengthen the country’s fuel buffer stock, Department of Finance Secretary Frederick Go announced Tuesday.
Speaking at the InvestPH conference in Bonifacio Global City, Taguig, Go said the procurement will be handled by the state-owned PNOC-Exploration Corp. (PNOC-EC) and is intended to supplement the private sector’s existing fuel reserves.
“This is a precautionary measure to add to our oil buffer stock,” Go said, noting that the planned purchase is equivalent to roughly 10 days of additional supply. He added that PNOC-EC has already begun the procurement process and expects to secure the oil soon, aiming to ease concerns about potential shortages.
Go also highlighted recent discussions with private oil companies. “Last Sunday, together with the Energy Secretary, we met with 16 oil companies and agreed on emergency measures, such as acquiring oil at lower prices and expanding the list of countries we can source fuels from,” he said.
Earlier, the Department of Energy (DOE) indicated that PNOC may also buy extra diesel, which would then be sold to local fuel retailers at cost to recover the company’s expenses.
PNOC and its subsidiary, PNOC-EC, are mandated to help stabilize the country’s petroleum supply while supporting economic growth, alongside their role in energy exploration and development.
