PH gov’t wants to buy 1 million barrels of diesel as buffer stock

PH government plans to buy 1 million barrels of diesel as reserve

Amid rising tensions in the Middle East and the ripple effects on countries like the Philippines that rely heavily on imported oil, the government has announced plans to procure 1 million barrels of diesel as reserve stock in a bid to cushion the impact of soaring diesel prices.

According to the Philippine National Oil Company (PNOC), the country consumes roughly 33 million liters of diesel per day. That means the planned 1 million barrels, equivalent to nearly 159 million liters, would be enough to cover about five days of national diesel demand.

“Ang plano talaga is ibebenta 'yan with oil companies pa rin. In other words, parang reserve lang siya, tumulong na magkaroon ng reserve ang government natin ng diesel. Extraordinary circumstance na ho tayo ngayon. Ayaw na natin i-solely rely sa private sector ‘yung supply security. Gusto natin tumulong na rin ang government,” said Department of Energy (DOE) Oil Industry Management Bureau Director, Rino Abad.

(The plan is really to sell it through the oil companies as well. In other words, it will essentially serve as a reserve, helping the government maintain its own diesel stockpile. We’re in extraordinary circumstances now. We no longer want to rely solely on the private sector for supply security. We want the government to help out as well.)

Abad, however, clarified that the planned purchase of 1 million barrels of diesel will not immediately affect fuel prices next week, which authorities warn could jump by as much as PHP 28 per liter. If the purchase pushes through, PNOC will sell the diesel to oil companies at cost and without any markup to help cushion the impact on consumers.

In an earlier statement released several days ago, President Ferdinand “Bongbong” Marcos, Jr., has assured Filipinos that the country has at least 50 days’ worth of fuel stocks. According to the President, the current stockpile includes 50½ days of diesel and 51½ days of gasoline. Meanwhile, other fuel reserves are also healthy: 67 days of kerosene, 51½ days of fuel oil (likely bunker fuel for industries), 58½ days of jet fuel, and 29½ days of LPG.