PNOC asks Congress for P8-B fuel budget
The Philippine National Oil Co. (PNOC) has asked the House of Representatives for an P8-billion supplemental budget to buy additional fuel as the government shores up its energy reserves, while also proposing a phased approach to building the country’s stockpile.
The state-owned energy company urged lawmakers to approve its additional corporate operating budget that would be used to purchase fuel stocks to replenish existing reserves, according to its congressional briefer submitted to the House.
The requested P8-billion top-up fund will be drawn from PNOC’s “internally generated funds,” and its approval will “strengthen Government’s ability to respond swiftly to supply disruptions without relying on repeated ad hoc funding actions,” according to the document.
“The proposed mechanism is designed to be self-sustaining,” it said. “Rather than functioning as a one-time expenditure, it will allow PNOC to cycle inventory and restore funding capacity as stocks are disposed of or utilized.”
PNOC’s plea for an additional budget comes as the energy department activated an emergency fuel procurement program last month after President Marcos declared a national energy emergency amid soaring oil prices.
“Such support will enable PNOC to act quickly, prudently, and in a manner fully aligned with the Government’s energy security objectives during the present crisis,” it said.
The Philippines, among the nations hardest hit by the supply disruptions due to the Middle East conflict, has raced to shore up its energy reserves and tapped suppliers in Singapore, Japan and China for replenishments, Energy Secretary Sharon Garin said on Wednesday.
Current stocks are expected to last for 50 days, and the Department of Energy plans to procure two million barrels of oil to bolster supply, with a P20-billion emergency fund streamlined to PNOC to secure suppliers. About one million have been purchased so far, according to Garin.
Still no stockpile
PNOC recommended that efforts to build up the country’s oil reserves be carried out in tranches, according to the congressional briefer.
“The first tranche will provide immediate buffer capacity, while subsequent procurement will be undertaken only when market conditions, policy guidance, and national supply requirements justify further deployment of capital,” it said.
“Under this phased approach, fuel stocks may be strategically placed at key import terminals and storage facilities in order to improve readiness and distribution flexibility,” it added.
