The government is allocating as much as P20 billion to secure a buffer of up to 2 million barrels of oil through the Philippine National Oil Company (PNOC) intended as a contingency, not for immediate consumption.
“The maximum target of PNOC is 2 million barrels, minimum would be 1 million,” Garin told reporters at a media briefing on Tuesday.
Garin said the 400,000 barrels have already been transacted, with another 600,000 expected this week.
The first batch will come from Southeast Asia, and the remaining from outside the region to diversify supply and reduce vulnerability to disruptions.
Garin also noted ongoing discussions with Japan, a long-time fuel supplier to the Philippines.
“Japan is very accommodating. We are grateful for the good relationship between Japan and the Philippines. They understand your situation, but we also understand theirs,” she said.
While the P20 billion outlay is seen as costly, Garin said the government expects to recoup some of the spending by eventually selling the buffer to oil companies.
“It’s very expensive, but what will eventually happen is we also sell the buffer so we can use the money to buy more. We are not in the business of retail gas; we are just doing this for buffering,” she explained.
Current national inventories average 45 days.
By product, the figures show ample supply: gasoline at 53.14 days, diesel at 45.82 days, kerosene at 97.93 days, jet fuel at 38.62 days, fuel oil at 61.49 days, and LPG at 23.51 days.