DOE seeks to keep strategic oil reserve off national budget

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

June 7, 2026 | 12:00am

MANILA, Philippines — The Department of Energy is exploring alternative funding options for the country’s planned strategic oil reserve to ensure the project could proceed without drawing on the national budget.

Energy Secretary Sharon Garin said the World Bank and the Asian Development Bank could support the project’s feasibility studies, while the government also looks to tap sovereign wealth fund manager Maharlika Investment Corp.

“We’re trying to study that it (strategic oil reserve) won’t come from the national fund. It can be funded in any way,” Garin told Money Talks on One News.

The energy chief said the national oil stockpiling system would be a “very big project,” with early estimates showing that around P5 billion would be needed to build a single storage tank capable of holding one million barrels of oil.

“So it’s very expensive, but there are ways to design this that will be more beneficial than just having it there,” she said.

The Philippines is advancing plans for a government-owned petroleum reserve to strengthen energy security and resilience against global supply disruptions driven by geopolitical tensions.

The project is intended to provide a strategic buffer beyond the 30 to 60 days’ worth of inventories held by private oil companies, which own most of the country’s petroleum storage facilities.

Garin said the strategic oil reserve would not only provide Filipinos with a greater sense of energy security, but also improve the Philippines’ investment profile.

“It’s also to make the Philippines more attractive as an investment destination. This could be a good investment where there are returns,” she said.

Following President Marcos’ state visit to Japan, Tokyo has pledged support for Manila’s push to establish a national stockpiling system.

Japan has also backed the Philippines’ broader initiative to pursue an ASEAN-wide joint stockpiling mechanism.

Garin said representatives from the Japanese government are expected to visit the Philippines next month to further advance discussions on the initiative.

“Hopefully by July, we can have a more concrete direction,” the energy chief added.

The Philippines remains heavily dependent on imported fuel, sourcing about 98 percent of its crude oil from the Middle East, leaving the country vulnerable to supply shocks and price spikes.

During the height of the US-Iran war, diesel and gasoline prices even surged to as high as P170 and P120 per liter, respectively.

As of May 29, the country’s average fuel inventory stood at 45.97 days, based on the latest available data.