PNOC-EC sells 45M liters of diesel for off-grid power

The Philippine National Oil Company–Exploration Corp. (PNOC-EC) will sell 45 million liters of government-procured diesel over the next three months to support electricity generation in off-grid and island communities.

The Department of Energy (DOE) said Monday the diesel supply, priced at P80 per liter, will be sold to new power providers (NPPs) and microgrid system providers (MGSPs) operating in missionary areas, including Mindoro, Marinduque, Romblon, Palawan, Catanduanes, Masbate, and Siquijor.

Energy Secretary Sharon S. Garin said the president approved the diesel support to help sustain electricity generation in remote communities that rely heavily on diesel-fired power plants.

“Providing assistance for the diesel requirements of power providers serving missionary areas is a concrete and proactive measure to help protect electricity access and the welfare of thousands of Filipinos living in remote and island communities outside the main grid,” Garin said.

The DOE said the measure is intended to help off-grid power providers maintain operations, avoid prolonged outages, and mitigate spikes in electricity generation costs that are typically passed on to consumers.

“By supporting the fuel requirements of off-grid power providers, we are helping sustain reliable and affordable electricity service for remote and island communities that depend on diesel-fueled generation,” Garin said.

NPC President and CEO Jericho Nograles, on the other hand, said stable electricity supply in missionary areas remains essential to economic activity and access to basic services in remote communities.

“Safeguarding power supply in these communities is an economic imperative: ensuring that residents can continue to work, study, and access essential services,” Nograles said.

Under the Unified Package for Livelihoods, Industry, Food, and Transport program governed by the Executive Order No. 110, which declared a State of National Energy Emergency, the diesel allocation will be sourced from the country’s fuel buffer stock under the Emergency Energy Security Program.

As of 27 April, the DOE said 178.33 million liters of diesel had been added to the national reserve through four shipments received in Batangas, Subic, and Davao City.

The first shipment from Japan arrived in Batangas on 26 March, carrying 22.66 million liters of diesel, followed by deliveries of 52.41 million liters and 50.81 million liters in Subic, and another 52.45 million liters in Davao City.