THE Economic Research Institute for Asean and East Asia (ERIA) is studying a Philippine proposal to establish oil stockpiles across Southeast Asia to strengthen the region’s protection against future supply disruptions and price shocks, Trade Secretary Cristina Roque said.
Roque noted the initiative was proposed by President Ferdinand Marcos Jr. following the oil crisis triggered by the United States-Iran war, which exposed Asean economies, particularly net oil importers such as the Philippines and Thailand, to supply disruptions and global price spikes.
Under the proposal, participating Asean countries would maintain oil stockpiles that could serve as strategic buffers during supply emergencies.
“So that, just in case an oil crisis happens again, we can rely on Asean — that’s what the president wants to happen,” Roque said.
Five of Asean's 11 members — Indonesia, Singapore, Malaysia, Thailand, and Vietnam — have expressed interest in hosting oil stockpiles, according to Roque.
She said the United Arab Emirates has also agreed to supply oil to Asean members willing to maintain reserves.
Roque said Marcos had reached out to other Asean leaders to gauge their interest in the initiative. While not all members are interested in hosting stockpiles, participating countries could proceed with the plan once the study is completed.
ERIA officials met with Roque two weeks ago to discuss the progress of the study, which is expected to be completed by November.
ERIA, established in 2008, conducts research and provides policy recommendations to the Asean Secretariat and governments in East and Southeast Asia, including on energy security, supply-chain resilience, and trade.