SEN. Panfilo Lacson is apprehensive about the move of the Maharlika Investment Corp. (MIC) to set up an expanded oil storage facility to help protect the country from future oil price surges.
The Senate president pro tempore on Thursday said the MIC’s initiative is “a good step but not without concerns.” Lacson noted that while the move can help safeguard domestic oil supply, it may not necessarily bring down fuel prices — especially since the MIC is an investment entity designed to generate profit.
“This is one good move to obviate the possible shortage of our domestic supply of oil. However, I cannot help but be apprehensive since the Maharlika Investment Corp. is an investment entity that is designed to earn profit — hence while it may help ensure continuous supply of oil, it may not be able to help bring down the prices of oil products,” he said in a statement.
MIC President and Chief Executive Officer Rafael Consing Jr. disclosed the plan during a House of Representatives panel hearing, saying the facility will be developed under a consortium model.
Consing was quoted in reports as saying that state-run Philippine National Oil Co. will contribute land or other assets, while the MIC and private investors will shoulder the financial requirements, and the private sector will handle operations of the oil storage.
Lacson earlier urged the government to go beyond traditional “ayuda” (aid) and explore targeted measures to support Filipinos affected by the fuel crisis caused by the Middle East war.
He said the government can study approaches adopted by neighboring economies such as Taiwan, which implements subsidy mechanisms to help cushion fuel price spikes.
