Philippines Secures 51-Day Oil Supply Buffer Amid Global Energy Uncertainty
The Philippine government has secured a 51-day oil supply buffer as it moves to protect national fuel reserves amid continued instability in the Middle East. President Ferdinand R Marcos Jr announced a series of procurement, regulatory, and financial measures aimed at stabilising energy supply and mitigating price volatility. According to an official government report, the initiatives combine emergency fuel purchases, electricity market intervention, and targeted support for the transport sector.
The President said the country’s buffer stock currently provides 51 days of supply. This includes fuel procured through the Philippine National Oil Company–Exploration Corporation (PNOC-EC) and additional reserves funded through emergency budget allocations.
Emergency Procurement Strengthens National Fuel Reserves
PNOC-EC has ordered 1.04 million barrels of diesel to reinforce supply. Of this amount, 142,000 barrels were delivered during the current week, while the remaining shipments are scheduled to arrive in April.
The Department of Budget and Management has also released PhP20 billion to procure up to two million additional barrels of oil. The additional supply is expected to extend the country’s buffer stock by around 10 days.
Earlier government projections indicated that existing crude oil supplies would remain sufficient until 30 June. Authorities are nonetheless expanding reserves to mitigate potential disruptions linked to global geopolitical developments.
Executive Measures to Stabilise Energy Markets
The administration has introduced several regulatory actions to manage potential price volatility. Executive Order No 110 authorises the Department of Energy (DOE), PNOC, and PNOC-EC to accelerate oil procurement during supply emergencies.
In addition, Republic Act No 12316, signed on 25 March, allows the President to suspend excise taxes on oil products if required. The Development Budget Coordination Committee is expected to review and present its assessment of the potential tax suspension.
Executive Order No 110 also enables the DOE to recommend action by the Energy Regulatory Commission (ERC) concerning the operation of the Wholesale Electricity Spot Market (WESM). Since 26 March, the ERC has temporarily suspended WESM operations to help manage electricity prices and reduce volatility. During the suspension, electricity dispatch prioritises lower-cost energy sources, including renewable generation.
These policy actions align with broader national efforts to modernise energy systems and strengthen infrastructure resilience, which have been discussed in initiatives such as digital innovation in infrastructure and energy development in the Philippines.
Domestic Gas Production Supports Longer-Term Energy Security
Alongside short-term supply measures, the government highlighted progress in domestic energy production. The Camago-3 gas well has successfully completed drilling and testing and is expected to produce up to 60 million cubic feet of gas per day.
Additional domestic gas output is expected to contribute to power generation capacity and provide longer-term stability for electricity supply and pricing.
Transport Sector Support and Public Assistance
The government has also introduced targeted assistance for commuters and transport workers affected by fuel price increases. A 50 percent fare discount has been implemented on LRT-2 and MRT-3 services, a measure expected to benefit more than 12 million passengers.
Free ride programmes are being implemented across Metro Manila, Metro Cebu, and Metro Davao. Temporary toll discounts have also been extended to jeepneys, buses, and freight vehicles transporting food along the North Luzon Expressway (NLEX), South Luzon Expressway (SLEX), and STAR Tollway.
Beginning 15 April, ports will charge a PhP1 roll-on/roll-off (RORO) terminal fee for vehicles transporting agricultural products to reduce logistics costs for food supply chains.
Financial support has also been directed to the transport workforce. The government allocated PhP2.5 billion in fuel subsidies for more than 1.4 million drivers and transport operators. To date, PhP300 million has been distributed to 155 drivers and 55,252 unit operators.
More than 256,000 transport workers in Metro Manila have also received PhP5,000 in cash assistance. An additional PhP1.28 billion in support is scheduled for nationwide distribution beginning 6 April.
