Manila: The planned national fuel stockpiling system will not burden the national government in terms of financing as this will be shouldered by the Maharlika Investment Corporation (MIC) and other investors, Energy Secretary Sharon Garin said Monday. She stated that the plan would enable the government to maintain at least 30 days of fuel reserves in addition to the existing private sector reserves, to mitigate the impact of supply disruptions.

According to Philippines News Agency, the Philippine National Oil Company (PNOC) will conduct a feasibility study with assistance from the Japanese government, which is expected to send representatives to the Philippines in the coming months. The primary goal is to enhance the current 60-day stockpiling capacity of private companies, potentially increasing it to between 30 and 60 days, depending on the resources available from private entities, Garin explained.

Garin noted that officials from the MIC and the PNOC are in the process of drafting the rules defining the roles of each agency, with the final document anticipated to be released within the month. The investment will depend on the outcome of the feasibility study, and the facility is projected to be completed in about a year, covering study, permitting, and construction phases.

While Garin refrained from providing specific investment figures, she mentioned that a storage tank capable of holding around 500,000 million barrels of oil could cost approximately PHP5 billion. She emphasized that this initiative would enable the government to establish its own stockpiling facility, moving away from relying on the facilities of private oil firms.

Garin highlighted that the Philippine government has long refrained from direct involvement in the oil and power sectors. However, she suggested that changing times necessitate a policy review to prevent repeating past experiences related to the Middle East crisis.