MANILA, Philippines — Sen. JV Ejercito called on the Department of Energy (DOE) to strengthen the country’s fuel reserves to ensure a stable and reliable supply of petroleum products and help mitigate oil price increases.
Ejercito, chairman of the Senate Committee on Finance, made the call during the DOE’s budget hearing, where he sought an update on the government’s plans to expand the country’s strategic fuel reserves.
“We found out how important it was, especially when this Middle East conflict started. We really have to be prepared for this,” he said.
Ejercito proposed a multi-year approach to the program, acknowledging that building up the reserves would require significant funding and could not be completed immediately.
“We have to do it already. If we can’t do it immediately because you know that it entails a big amount at multi-year—at least, we have to start,” he said.
“If we can start on it, say next year, to at least start the ball rolling already,” he added, urging the government to shift from a reactive approach to proactive measures that would strengthen the country’s preparedness before a crisis occurs.
The DOE said the government could not immediately fund a 60-day reserve and would initially need to establish a smaller stockpile, which could gradually be expanded toward the target of a 90-day strategic reserve.
Under the proposed system, private companies would maintain a 30-day supply, while the government would maintain an additional 60 days’ worth of reserves.
