Senator Francis "Chiz" Escudero has introduced Senate Bill No. 1993, proposing the establishment of a government-owned crude oil storage facility to strengthen the country’s ability to respond to oil crises and enhance fuel security.

Escudero noted that the Philippines relies on imports for about 90 to 95 percent of its crude oil and refined petroleum requirements, leaving it highly exposed to global supply disruptions.

He said this dependence highlights the urgency of creating a national petroleum reserve to cushion the impact of external shocks.

The senator pointed to rising tensions in the Middle East, including attacks on energy infrastructure and instability along key shipping routes, as factors driving volatile prices and supply risks across the region.

“Even temporary disruptions in the Strait of Hormuz have immediately sent fuel prices soaring in the Philippines, with cascading effects on transport, food logistics, and power generation,” the senator pointed out.

Under the proposed measure, the country would construct a crude oil tank farm with storage capacity equivalent to 90 days of national consumption, estimated at P30 billion, and expandable up to 180 days or around P60 billion.

Meanwhile, Energy Secretary Sharon Garin said in a recent interview that current oil inventories may only last until the end of April, with supply orders for May still being arranged.

The bill sets aside an initial P60 billion for the development of the reserve facility.

It also designates the Department of Energy, in coordination with the Philippine National Oil Company or its subsidiaries, to oversee the acquisition of fuel stocks as well as the construction, operation, and maintenance of the storage system, including procurement and handling of reserves.

The proposal also includes a Targeted Fuel Relief Program that would provide direct assistance, such as cash aid or fuel vouchers, to sectors most affected by supply disruptions, price spikes, or states of calamity. Beneficiaries would include farmers, fisherfolk, public transport drivers, delivery workers, and micro and small enterprises dependent on fuel.

Escudero stressed the importance of having a national buffer against sudden supply interruptions, geopolitical crises, refinery shutdowns, and extreme price increases.

“A strategic crude oil stockpile is our shield. Every time tensions rise in the Middle East, every time shipping lanes are disrupted, our economy absorbs the shock within days. We need a national buffer that protects Filipino families and industries from crises happening thousands of miles away,” he said.

Escudero noted that despite being heavily reliant on imports, the Philippines remains among the few major Asian economies without a strategic petroleum reserve.

“We cannot continue living at the mercy of global events. A modern economy needs a modern safety net. We must catch up,” he concluded.

The senator is proposing Limay, Bataan as the site for the facility, citing its strategic advantages. The area hosts the Petron Bataan Refinery, the country’s only operational oil refinery.

“The area’s deep-water port, existing crude-handling facilities, and proximity to the country’s only refinery make it a practical site for a government-owned reserve. I envision the facility being built on government-secured land to ensure full public control while benefiting from the logistical advantages of the region,” he said.

Escudero said the proposed facility would complement—not disrupt—private sector operations by serving as a stabilizing mechanism during emergencies.

“By releasing crude during shortages or extreme price spikes, the government would be able to protect essential sectors such as transport, agriculture, and power generation, while also strengthening the country’s negotiating position during global market disruptions,” the senator said.

Escudero also pointed out that several countries already maintain strategic petroleum reserves. These include the United States, Japan, and members of the International Energy Agency, which typically hold reserves equivalent to at least 90 days of net imports.

He cited South Korea as an example of an import-dependent economy with a well-developed reserve system managed by the Korea National Oil Corporation, enabling it to respond quickly to global supply disruptions.

-Paraluman News