Senator Francis “Chiz” Escudero has filed Senate Bill No. 1993 which seeks to establish a government-owned crude oil tank storage facility to better position the country in dealing with oil crisis and ensure fuel security.
The Philippines imports about 90 to 95 percent of its crude oil and refined petroleum needs, making it highly vulnerable to external shocks, and Escudero said this situation underscores the need for the country to establish a crucial petroleum reserve depot to cushion the impact.
Escudero said the escalating tension in the Middle East, including ongoing attacks on energy infrastructure and instability affecting major shipping lanes, has triggered unpredictable price movements and supply risks across Asia.
“Even temporary disruptions in the Strait of Hormuz have immediately sent fuel prices soaring in the Philippines, with cascading effects on transport, food logistics, and power generation,” the senator pointed out.
Under Escudero’s proposal, the Philippines would build a crude oil tank farm capable of storing 90 days’ worth of national consumption (estimated at P30 billion) up to 180 days (P60 billion).
Energy Secretary Sharon Garin, in a recent interview, said that the current inventory would only last until the end of April, and orders for May delivery are still being worked out.
The bill allocates an initial funding of P60 billion for the construction of the fuel reserves facility.
The acquisition of fuel inventory for the reserve shall be undertaken by the Department of Energy, or through the Philippine National Oil Company or its subsidiary. They shall also be responsible for the construction, management, maintenance, and operation of fuel storage facilities, as well as the procurement, handling, storage, quality maintenance, rotation and transport of fuel reserves.
The measure likewise seeks to establish a Targeted Fuel Relief Program to extend direct cash assistance or fuel vouchers to sectors most affected by severe petroleum supply disruptions, sharp increases in international petroleum prices, or a declared state of calamity of emergency. These include small farmers and fisherfolk, public transport and delivery drivers, micro and small enterprises engaged in fuel-dependent activities, among others.
The Bicolano senator underscored the need for a national buffer to cushion sudden supply cuts, geopolitical crises, refinery shutdowns, extreme price spikes, and shipping disruptions.
“A strategic crude oil stockpile is our shield. Every time tensions rise in the Middle East, every time shipping lanes are disrupted, our economy absorbs the shock within days. We need a national buffer that protects Filipino families and industries from crises happening thousands of miles away,” he said.
The proposed oil depot, he added, would not interfere with private sector operations but would serve as a stabilizing mechanism during extraordinary circumstances.
“By releasing crude during shortages or extreme price spikes, the government would be able to protect essential sectors such as transport, agriculture, and power generation, while also strengthening the country’s negotiating position during global market disruptions,” the senator said.
Escudero noted that many countries have long prepared for such scenarios by maintaining national oil stockpiles. The United States, Japan, and members of the International Energy Agency (IEA) hold reserves equivalent to at least 90 days of net imports.
For example, South Korea, which is one of the most import‑dependent economies in Asia, maintains a sophisticated reserve system managed by the Korea National Oil Corporation, enabling rapid response during global crises and stabilizing domestic supply, he said.
Escudero pointed out that the Philippines is among the few major Asian economies that are heavily import‑dependent yet lack a strategic petroleum reserve.
“We cannot continue living at the mercy of global events. A modern economy needs a modern safety net. We must catch up,” he concluded.
The veteran legislator is proposing the coastal municipality of Limay on the eastern side of Bataan as the site of the future storage facility since it currently hosts the country’s lone active oil refinery, the Petron Bataan Refinery.
“The area’s deep‑water port, existing crude‑handling facilities, and proximity to the country’s only refinery make it a practical site for a government‑owned reserve. I envision the facility being built on government‑secured land to ensure full public control while benefiting from the logistical advantages of the region,” he said.