DOE pushes stronger oil safeguards supply

National

THE Department of Energy (DOE) is seeking amendments to the Downstream Oil Industry Deregulation Act of 1998 to strengthen the country's energy security.

The proposal includes a larger national fuel reserve and stricter inventory requirements for oil companies to help cushion the impact of future global oil supply disruptions.

Energy Secretary Sharon Garin said the agency is proposing the establishment of a national fuel reserve equivalent to at least 60 days of supply, while increasing the minimum inventory requirement for oil companies from 15 days to 30 days.

"These are not simple regulatory amendments. These are practical measures to strengthen our energy security, improve supply resilience and better protect the Filipino people from future global disruptions," Garin said during a virtual briefing per a report by Philstar.

Garin clarified that the proposed amendments do not seek to give the government control over fuel prices despite calls from some sectors for tighter regulation of the downstream oil industry.

Instead, she said the DOE is proposing safeguards, including a strategic fuel reserve that would allow the government to monitor oil trading and strengthen supply preparedness during periods of market disruptions.

She added that Congress will have the final say on the proposed amendments, including whether to expand the government's role in fuel price regulation or require oil companies to disclose unbundled fuel prices.(Jhenevive Etang, PIT Comm Intern)