DOE urged to fast-track oil stockpiling

MANILA, Philippines — The Department of Energy (DOE) is being urged to fast-track the establishment of the country’s oil stockpiling program amid the oil price increase for six straight weeks.

In a statement, former defense secretary and senatorial candidate Gilbert Teodoro urged the DOE and the Philippine National Oil Co. (PNOC) to accelerate the crafting of an oil stockpiling program.

“The DOE has been suggesting for oil stockpiling few months after the onset of the COVID-19 pandemic, when oil prices in the international market plunged below $20 a barrel. The PNOC last year said it targets to establish and operate a National Strategic Petroleum Reserve to mitigate the country’s vulnerability from changes in global oil supply and demand disruptions. I support this move, but the concerned agencies should double time in crafting a program on oil stockpiling,” Teodoro said.

So far this year, prices have increased by P6.75 per liter for gasoline, P9.15 per liter for diesel and P8.45 per liter for kerosene, data from the DOE showed.

Teodoro said the government should have a prepared measure to lessen the impact of oil price hikes in the future, so that when petroleum prices in the world market decline, the country may take advantage in buying fuel products at a cheaper price and use it when prices start to climb.

“The problem of high oil prices is not new to us, but we have been passive in providing solutions when energy crisis arises. It is time to be proactive and present feasible measures, and I believe that stockpiling is one of them,” he said.

In September last year, the DOE issued a circular on forming the country’s strategic petroleum reserve aimed to reduce price and supply shocks from importing oil.

The new circular serves as the implementing guidelines for the establishment of the Philippine Strategic Petroleum Reserve Program (PSRP), with state-run PNOC and DOE jointly implementing the program.

It aims for the country to have a government-owned reserve of crude oil, finished petroleum products and biofuel reserve to enhance the security of fuel supply in the country and address a severe international supply interruption or to implement the Targeted Fuel Relief Program.

However, DOE-Oil Industry Management Bureau director Rino Abad earlier said the PRSP feasibility study would have to be undertaken and this would take 18 months from the issuance of the circular.

After the feasibility study is approved, PNOC will prepare and jointly review and approve with DOE the implementation plan detailing the work program and budget for the actual implementation of the SPRP within 12 months, he said.

This means the oil stockpile will not be realized within the Duterte administration.