Philippine Fuel Supply Stable Despite Middle East Tensions, DOE Says
MANILA, Philippines — The Department of Energy (DOE) has assured the public that the country’s fuel supply remains stable despite ongoing geopolitical tensions in the Middle East that have pushed global oil prices higher.
Speaking at a briefing at the DOE headquarters in Taguig City, Energy Secretary Sharon Garin said local oil companies are compliant with the mandated minimum 15-day inventory requirement, ensuring sufficient domestic fuel reserves.
“We have enough supply,” Garin said, emphasizing that industry players are maintaining the required buffer stocks.
The energy chief clarified that the government does not require companies to stockpile up to one year of supply, noting that such a directive would be “very expensive” and would require significantly expanded storage capacity.
According to Garin, oil firms have the flexibility to boost their inventory if needed, as shipments from the Middle East typically arrive within a week.
“But they have more than that. They don’t only have double the minimum requirement, they have three times the minimum requirement,” she added, underscoring the industry’s preparedness.
Global Oil Price Volatility
The assurance comes as global oil prices fluctuate amid supply disruptions linked to the closure of the Strait of Hormuz. Oil futures briefly touched USD80 per barrel on Monday before easing to around USD79 the following day.
Garin noted that such price movements were expected given the current geopolitical climate but declined to offer long-term projections due to ongoing market volatility.
Oil trading, she said, is conducted daily, making price swings difficult to forecast with certainty.
DOE officials have already met with oil companies earlier this week and are scheduled to hold another round of discussions to refine contingency plans.
“We are hoping for the best but we are preparing for the worst,” Garin said.
Heavy Dependence on Middle East Crude
The Philippines sources approximately 98 percent of its crude oil imports from the Middle East, with the remaining 2 percent coming from Malaysia and Brunei Darussalam. Disruptions in key shipping routes such as the Strait of Hormuz pose risks to supply chains, prompting heightened monitoring by the DOE.
Possible Fuel Price Adjustments
During the same briefing, Rino Abad, director of the Oil Industry Management Bureau (OIMB), said oil firms are accustomed to adjusting supply levels during periods of geopolitical instability, including tensions involving Iran and Israel.
“In fairness to the oil companies, they agreed (to increase their supply) before. So, we had already that experience… So, we’ll just reinforce again that same kind of arrangement with the oil companies tomorrow,” Abad said.
The DOE will begin calculating potential domestic fuel price adjustments for the coming week starting Wednesday. Final figures will be determined after the close of weekly trading on Saturday.
“And each company will have to decide if the standard increase will be done in two or three implementation(s). But what we want is at least the reasonable adjustment will be done on a weekly basis,” Abad added.
Exploring Alternative Oil Sources
Abad also disclosed that the government, through private oil companies, is exploring alternative crude sources outside the Middle East, including Africa, Canada, and parts of South America, to diversify supply channels if disruptions persist.
Despite heightened tensions abroad, the DOE reiterated that fuel supply in the Philippines remains sufficient and that close coordination with industry stakeholders continues to ensure energy security and stable distribution nationwide.
via PNA
