The government is scrambling to secure fuel supplies as global oil prices surge due to the Middle East crisis, warning that pump prices could spike sharply this week and strain both consumers and the broader economy.
Energy Secretary Sharon Garin said Tuesday, March 24 that the government is preparing up to P20 billion to build a diesel buffer stock to cushion supply disruptions and stabilize the market.
The Philippine National Oil Company (PNOC) aims to procure up to two million barrels of diesel—equivalent to roughly 10 days of additional supply.
It has already secured about 400,000 barrels from Southeast Asian suppliers and is negotiating for another 600,000 barrels from outside the region.
Garin said even one million barrels—enough for about a week—could already cost more than P10 billion, underscoring the scale of the government’s response.
Authorities expect fuel prices to surge this week, with diesel projected to reach as high as P144.20 per liter following increases of P15 to P18 per liter.
Gasoline prices may rise by P8 to P12 per liter, while kerosene could climb by as much as P22 per liter to P165.79 per liter.
To fund the buffer stock, Budget Secretary Rolando Toledo said the government plans to tap P20 billion from the Malampaya natural gas fund, part of a broader P230-billion package to mitigate the impact of the crisis. He said the request for release is already under process.
The government is also exploring additional financing, including P15 billion in unused PNOC funds and a P10-billion credit facility from the Land Bank of the Philippines.
It has allocated portions of the total package for social protection, migrant workers, small businesses, and assistance to Filipinos abroad, as well as fuel subsidies for farmers and the transport sector.
Despite rising global pressures, the Department of Energy said the country still has enough oil supply to last 45.1 days. However, Garin flagged liquefied petroleum gas (LPG) as a growing concern and said the government is coordinating with businesses to temporarily reduce consumption while awaiting new deliveries.
To prevent delivery disruptions, the Metropolitan Manila Development Authority has exempted fuel tankers and vehicles carrying essential goods from truck bans and number coding across Metro Manila.
Garin said the government is also pursuing government-to-government deals with South Korea, India, China, and Japan to secure additional supply and maintain stable reserves.
At the regional level, Southeast Asian nations are exploring emergency fuel-sharing arrangements, with discussions expected to move forward during the ASEAN Summit that the Philippines will host in 2026.
Beyond fuel, the government is taking steps to stabilize power supply as well. Authorities are considering increasing reliance on coal-fired plants as liquefied natural gas prices surge, while fast-tracking 23 power projects expected to add about 900 megawatts to the grid within 60 days.
President Ferdinand Marcos Jr. has also ordered government agencies to cut electricity and fuel consumption by 10 to 20 percent and authorized the return of overseas fuel stockpiles to extend domestic reserves.
However, analysts warned that risks remain, particularly in the Visayas grid, where yellow alerts could occur by May due to limited local generation and reliance on imported power.
They also cautioned that rising temperatures during the dry season could drive up electricity demand and further strain supply.
Authorities said these measures aim to keep the country supplied and resilient as it navigates what they described as a temporary but volatile global energy crisis.*
Reymund Titong is a Filipino journalist steadily building his voice in the field of news reporting, driven by a commitment to tell meaningful and relevant stories.
He serves as a correspondent for Rappler, maintains a personal blog on Medium, and is the communications officer of Hope Builders Organization Negros Island.