PNOC to buy 2 million barrels of oil to shore up PH’s fuel reserves

National

THE Philippine National Oil Co. (PNOC) has begun purchasing two million barrels of oil from the global market to strengthen the country’s fuel reserves and prevent possible supply shortages, Finance Secretary Frederick Go said.

In a report by Philstar, Go explained that the additional supply is equivalent to around 10 days of buffer stock, aimed at calming public concerns over a potential oil shortage.

He added that the procurement process is already ongoing and deliveries are expected to arrive in batches, possibly within the week.

The volume being secured is double the initial plan of one million barrels.

According to Go, sourcing oil from multiple suppliers is a more practical and safer approach to ensure continuous and stable supply.

Currently, the Philippines imports most of its oil from countries such as South Korea, Japan, Singapore, and China. However, the government is now exploring new sources, including a possible deal with Russia, after the United States recently eased sanctions on Russian oil exports.

Energy Secretary Sharon Garin earlier assured the public that the country has enough fuel supply to last until April. Still, officials are taking extra steps to prepare for any sudden disruptions in the global market.

To address both supply and price concerns, Go and Garin recently met with 16 oil companies to discuss emergency measures. These include securing oil at lower prices and expanding the country’s supplier network.

Go said the strategy could benefit consumers in two ways: increasing the country’s buffer stock and lowering fuel costs through bulk purchasing.

“When you place a large order in the global market, you can get better pricing,” he explained.

However, rising global tensions, particularly involving the US, Israel, and Iran, continue to threaten oil price stability. Go warned that if oil prices remain high, the Bangko Sentral ng Pilipinas may consider tightening its monetary policy in its next meeting to manage inflation.

Amid these developments, the government is also facing growing calls to review or repeal the Oil Deregulation Law of 1998. The law allows oil companies to independently adjust fuel prices weekly, which some groups say contributes to frequent price increases.(Bhea Bianca S. Sadaya, CTU-TC BAEL-ELSD Intern)