Oil firms rush to build bigger fuel buffer 

The Philippines has begun securing May fuel stocks as the ongoing war in the Middle East continues to affect global supply.

This is according to Department of Energy (DOE) Secretary Sharon Garin, who added that local oil firms are expecting the fresh reserves to arrive in April.

“So the oil companies are supposed to make sure that we have stocks, minimum 15 days, but actually they surpass that. So they’re ordering now for their May stocks,” she said in a television interview Wednesday.

The country’s existing fuel inventory is expected to be depleted by the end of next month.

However, Garin said the government itself is also looking to acquire 1 million to 2 million barrels of oil to serve as a buffer, in case fuel retailers fail to procure in time.

The DOE previously said that the Philippine National Oil Co. (PNOC) would lead the procurement of diesel. Once cleared, PNOC will use government funds to buy the additional supply, which will then be sold to fuel retailers at cost.

Aside from the usual diesel suppliers, Garin said the country is actively “exploring everything,” including producers from Malaysia, Brunei, India, United States, Canada, Russia and other South American countries.

If oil companies get their supply from Asian countries, delivery may take one week. Suppliers outside the region, meanwhile, require a longer lead time of about a month.

“We’re slowly locking in some offers. Little by little, we’re trying to make sure that May is covered,” she said.

Garin earlier said that since the government was aggressive in pursuing alternatives, talks are now progressing well for additional orders of oil.

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Tycoon Ramon Ang-led Petron Corp. is already in discussion to purchase crude oil from Russia, she also noted.

Garin again called on the public not to hoard or engage in panic buying.

“All the oil fields that they bombed, it will take time to prepare those. Maybe, another six months after the war, slowly, it will go back to normal—the prices and logistics,” Garin said, when asked how long Filipino consumers would suffer the impact of the crisis.

Since the war started on Feb. 28, diesel and gasoline prices have risen by as much as P48.15 and P29.6 per liter, respectively.