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MANILA, Philippines — The government has secured 1.04 million barrels of diesel to beef up the country’s fuel buffer, with the first shipment having arrived last week and the remainder expected next month.
After the arrival of 142,000 barrels containing 22.58 million liters of diesel on March 26, the Department of Energy (DOE) confirmed that an additional 900,000 barrels are scheduled for delivery in the coming weeks.
The fresh shipments, equivalent to about 165.68 million liters, will provide an additional five days of supply as the country battles an energy emergency amid the global oil crisis.
State-run Philippine National Oil Co. (PNOC), which leads the procurement process, will offer the purchased stocks to local oil firms as needed, particularly in cases where their deliveries are delayed.
Energy Secretary Sharon Garin has assured the public that the country’s oil stocks, including shipments in transit, will be sufficient through the second week of May.
As of March 20, the Philippines had 45 days’ worth of fuel inventory, well above the 15-day minimum requirement, according to the DOE.
“The DOE, in coordination with PNOC Exploration Corp., continues to implement the necessary measures to safeguard the country’s energy security and support the oil supply needs of households, commuters and businesses,” the agency said.
Last week, the Philippines received its first crude shipment from Russia in five years, with Petron Corp. – operator of the country’s only remaining oil refiner – listed as consignee.
Sierra Leone-flagged crude tanker Sara Sky arrived and moored at Limay anchorage in Bataan, carrying 100,000 tons (about 750,000 barrels) of ESPO Blend oil.
‘No involvement in Davao fuel supply deal’
In another development, Malaysia’s state-run energy giant Petronas denied its involvement in a proposed fuel supply arrangement with the Davao del Norte provincial government.
“Petronas wishes to clarify that it is not aware of, nor involved in, any such arrangement, and has not entered into any related agreement or commitment,” the company said in a statement yesterday.
This follows multiple reports regarding Davao del Norte’s planned procurement of about 44 million liters of diesel from Malaysia.
The provincial government was not immediately available for The STAR’s request for comment.
Petronas, meanwhile, emphasized that its immediate priority is to ensure the reliable and continuous availability of fuel supply in Malaysia.
PNOC urged: Develop fuel storage facilities
House Minority Leader Marcelino Libanan yesterday called on PNOC to invest in critical coastal petroleum storage facilities, if possible, in Visayas and Mindanao, if only to ensure a steady supply of oil in the country.
“The oil crisis caused by the US-Israeli war on Iran clearly underscores the urgent need for the government, through PNOC, to establish its own emergency fuel reserves,” Libanan said.
He emphasized the need for strategic fuel reserves to shield the country from global supply shocks and soaring prices amid the ongoing Mideast conflict.
“We need a government-managed buffer stock of key petroleum products – particularly diesel, gasoline, and jet fuel – that can be rapidly deployed during times of crisis,” Libanan said.
He specifically urged PNOC to prioritize the construction of coastal storage facilities in the Visayas and Mindanao, ensuring more balanced and accessible fuel distribution across the country.
As a potential model, Libanan cited the Subic Bay Freeport Zone facility of Philippine Coastal Storage and Pipeline Corp.
The PCSPC’s 160-hectare complex has a storage capacity of 6.3 million barrels – approximately one billion liters – of fuel products. It serves Luzon, including much of Metro Manila, through an extensive network of clients in the petroleum sector.
Act decisively
Meanwhile, Rep. Arthur Yap underscored the need for the Philippine government to “act decisively” as Asia undergoes major economic transformation, highlighting energy security, industrial upgrading, and regional cooperation as key priorities.
“The Philippines must not remain at the margins of global supply chains,” Yap said, pointing to the need to move beyond low-value electronics assembly and into higher-value sectors such as semiconductor packaging, advanced manufacturing and technology services.
He made the pronouncements over the weekend during discussions on the 25th anniversary of the Boao Forum for Asia in Hainan, China.
The former agriculture minister emphasized that the region’s shift – driven by technological competition, evolving supply chains, and the transition to clean energy – presents a critical window for the Philippines to reposition itself.
He noted that the country’s vast nickel reserves provide a natural advantage in supporting the rapidly growing electric vehicle and renewable energy industries, but stressed that this potential can only be realized if longstanding structural constraints are addressed.
High electricity costs, inefficient logistics, and gaps in workforce skills were identified as key barriers to investment.
“Ensuring affordable, reliable energy requires us to pursue all viable options, including strategic partnerships that can stabilize supply and lower costs. These initiatives are critical not only for consumers but for strengthening competitiveness and attracting long-term investments.” Yap said.
There is also an importance of strengthening human capital, particularly through expanded science and engineering education and better alignment between training programs and industry needs.
Yap also emphasized economic resilience must include stronger support for agriculture. Expanding access to affordable financing – through crop insurance, credit guarantees, and risk-sharing mechanisms – can unlock productivity and break the cycle of underinvestment in the sector.
The lawmaker added that government policy should focus on de-risking private capital to enable greater investment flows into both industry and agriculture.
Regional developments, including renewed openness to joint energy exploration in the West Philippine Sea, were cited as positive steps toward building a more stable and predictable investment climate. — Delon Porcalla, Helen Flores
