Ejercito urges DOE to boost fuel reserves to lower fuel prices

MANILA, Philippines — Sen. JV Ejercito urged the Department of Energy (DOE) to strengthen the country’s strategic fuel reserves to ensure a stable, reliable supply of gasoline and help lower petroleum product prices.

According to a statement issued on Sunday, Ejercito made the call last Thursday during the hearing of the Senate Committee on Finance, which he chairs, on the proposed 2027 DOE budget, when he asked about the government’s plans for its fuel reserves. “We found out how important it was, especially when this Middle East conflict started. The situation is difficult. We really have to be prepared for this, especially because we don’t know [what mood US President Donald] Trump will be in when he wakes up,” Ejercito said in a mix of English and Filipino.

READ: Ejercito seeks Epira review as PH has highest rate in SE Asia He proposed a multi-year approach to the program, acknowledging that augmenting fuel reserves could not be done immediately.  “If we can start on it already, just tell us if it’s next year, to at least start the ball rolling already,” Ejercito said, insisting that the government should shift to being more proactive than reactive in responding to a crisis.

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The DOE agreed that the government could not immediately fund a 60-day reserve. So it should start with a smaller stockpile that it could add to gradually until it reaches the goal of a 90-day strategic reserve.

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Under this system, private commercial oil companies will stick to a 30-day fuel reserve, and the government will maintain a 90-day reserve.

But according to the DOE, funding for the strategic reserve program need not come from the General Appropriations Act (GAA), but from the Philippine National Oil Company (PNOC). Eventually, private investors can participate in developing fuel storage facilities. Ejercito also urged the DOE to intensify efforts to boost the country’s power-generation capacity, specifically in achieving its target of building around 200 generation projects before the end of the current administration.

READ: Gov’t says funds, fuel supplies sufficient amid Middle East conflict According to the DOE, 30 projects have already been completed, and more are underway. So it’s confident of completing the target number of projects during the current administration. 

Ejercito also said he was worried about reports that some power plants had been running below capacity amid a persistent power supply problem in the Visayas, which had affected daily life, livelihood, and business in the region.

The DOE said it was coordinating with the Energy Regulatory Commission (ERC) to monitor power plants and had deployed barges and battery systems as a temporary measure to address the power shortage in the Visayas. /atm