The Department of Energy (DOE) has activated a PHP 20-billion emergency fund to launch a Strategic Fuel Program aimed at strengthening the country’s fuel security amidst continued volatility in global oil markets.

Under the program, the government is targeting the procurement of up to 2 million barrels of fuel, which will be used to support domestic requirements and help mitigate the impact of global supply disruptions.

The initiative forms part of the DOE’s Emergency Energy Security Program, which includes the procurement of refined petroleum products, augmentation of liquefied petroleum gas (LPG) supply, and the buildup of domestic fuel inventories.

Funds will be channeled through the Philippine National Oil Corporation (PNOC) and PNOC Exploration Corporation (PNOC EC), which will serve as the implementing agencies for the program.

Energy Secretary Sharon Garin said: “This is a strong intervention by the President to strengthen the country’s fuel security amid global oil market disruptions. The government is taking concrete and proactive steps to secure fuel supply, maintain orderly market conditions, and protect the welfare of every Filipino motorist.”

The program is expected to support the uninterrupted operation of critical sectors. These include transport, food logistics, power generation, and industry, especially during periods of supply disruption in petroleum markets.

The DOE had previously explored the creation of a strategic fuel reserve, with earlier reports noting that the agency was indeed eyeing up to PHP 20 billion to build a stockpile of as much as 2 million barrels to buffer against global oil price volatility.

Beyond supply augmentation, the department said it is coordinating closely with relevant government agencies and industry stakeholders to monitor supply conditions, enforce compliance with existing laws and regulations, and implement measures to prevent supply constraints, unjustified price increases, and market abuse.

To strengthen transparency and accountability, the DOE added that it will publish compliance results of government entities through its official communication platforms.

The launch of the program signals a shift from planning to implementation, as the government moves to build a buffer against external supply shocks that could affect fuel prices and availability.

Will the government’s fuel buffer strategy be enough to shield the country from future global oil supply shocks?

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