SEN. Francis Escudero has filed Senate Bill 1993, which proposes the establishment of a government-owned crude oil storage facility.
The initiative is designed to enhance the nation’s fuel security and provide a buffer against global oil market fluctuations, promoting economic stability.
The proposal comes as the Philippines remains heavily dependent on imports, sourcing roughly 90 percent to 95 percent of its crude oil and refined petroleum requirements. This reliance, Escudero said, leaves the country highly exposed to geopolitical tensions and supply disruptions.
Citing escalating instability in the Middle East — including attacks on energy infrastructure and threats to key shipping routes such as the Strait of Hormuz — Escudero warned that even temporary disruptions can trigger immediate fuel price spikes in the Philippines. These increases, he noted, ripple across critical sectors including transportation, food logistics and power generation.
”A strategic crude oil stockpile is our shield,” Escudero said. “Every time tensions rise, our economy absorbs the shock within days. We need a national buffer that protects Filipino families and industries.” Under the bill, the government would construct a crude oil tank farm capable of storing between 90 and 180 days’ worth of national consumption. The estimated cost ranges from P30 billion for a 90-day reserve to P60 billion for a 180-day supply, with an initial P60 billion allocation proposed for the project.
The Department of Energy, in coordination with the Philippine National Oil Co. or its subsidiaries, would oversee the acquisition of fuel reserves as well as the construction, operation and maintenance of storage facilities. Their responsibilities would also include fuel procurement, quality control, rotation and distribution.
Energy Secretary Sharon Garin recently disclosed that the country’s current fuel inventory may only last until the end of April, with supply orders for May still being finalized — underscoring the urgency of establishing a long-term buffer.
Beyond infrastructure, the bill also proposes a Targeted Fuel Relief Program that would provide direct cash assistance or fuel vouchers to sectors most affected by supply disruptions or price surges. Beneficiaries would include small farmers, fisherfolk, public transport operators, delivery drivers, and micro and small enterprises reliant on fuel.
Escudero identified Limay as the preferred site for the proposed facility, citing its logistical advantages. The coastal municipality hosts the Petron Bataan Refinery — the country’s only active oil refinery — as well as a deep-water port and existing crude-handling infrastructure.
He emphasized that the planned depot would be built on government-secured land to ensure public control while leveraging the area’s established energy facilities.
Escudero noted that many countries already maintain strategic petroleum reserves. Members of the International Energy Agency, along with nations like the United States, Japan and South Korea, hold reserves equivalent to at least 90 days of net imports.
South Korea, for instance, operates a comprehensive reserve system managed by the Korea National Oil Corp., allowing it to respond swiftly to global supply disruptions.
The Philippines, Escudero pointed out, remains one of the few major import-dependent economies in Asia without such a safeguard.
The senator clarified that the proposed government reserve would not compete with private oil companies but would serve as a stabilizing mechanism during extraordinary circumstances. Strategic releases of crude oil during shortages or extreme price spikes, he said, would help protect essential sectors and improve the country’s bargaining position in volatile global markets.
”We cannot continue living at the mercy of global events,” Escudero said. “A modern economy needs a modern safety net. We must catch up.”
