THE House Committee on Energy has approved an unnumbered substitute bill establishing the Philippine Strategic Petroleum Reserve (PSPR) System, a government-owned petroleum reserve designed to protect the country from global supply disruptions, extreme oil price fluctuations, natural disasters, geopolitical conflicts, and other national emergencies.
Party-list Rep. Arthur C. Yap of Murang Kuryente, Energy committee vice-chairperson, described the measure as an important step toward strengthening national energy security and protecting Filipino consumers.
The proposed reserve will be equivalent to 60 days of petroleum supply and will remain separate from the commercial inventories maintained by private oil companies. It will serve exclusively as a national buffer and may be released only during authorized emergencies – not for routine market intervention or the administrative fixing, capping, or control of fuel prices.
Under the measure approved on Tuesday, the Department of Energy (DOE) will lead the implementation of the PSPR, while the Philippine National Oil Company (PNOC) or its affiliates will serve as the principal operating arm. The framework covers the acquisition, storage, maintenance, rotation, and emergency release of petroleum stocks.
The bill also institutionalizes minimum inventory requirements for refiners and importers. These requirements will be implemented gradually and in a commercially feasible manner, allowing the DOE to consider the financial capacity and available resources of industry participants.
‘We need resilience without unnecessarily disrupting the industry. The bill takes a balanced approach: the government builds a strategic reserve for emergencies, while private refiners and importers maintain their own minimum inventories under a commercially feasible framework,’ Yap explained.
Public-private participation in developing reserve infrastructure will also be permitted through procurement, public-private partnerships, and other lawful arrangements. Private storage facilities may be used for the reserve through mutual agreements, fair market-based compensation, and commercially negotiated terms.
During an authorized emergency release, petroleum supplies will be prioritized for critical sectors, including agriculture, healthcare, public transportation, power generation, and national defense and security, depending on the severity and regional impact of the disruption.
Yap stressed that the country’s dependence on imported crude oil and petroleum products makes it particularly vulnerable to external shocks.
‘When geopolitical conflicts, natural disasters, or global market disruptions affect petroleum supply, the consequences extend beyond fuel prices. They affect transportation, agriculture, electricity, manufacturing, livelihoods, and the cost of basic goods,’ he said.
The measure includes safeguards for transparency and accountability. The DOE will be required to submit an annual report to Congress detailing reserve levels, storage capacity, expenditures, acquisition strategies, and emergency releases. Stakeholder consultations must also be conducted before major changes are made to inventory requirements and operational policies.