Tovic Salvador

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MANILA -- As the Philippines grapples with high oil prices, many politicians, lawmakers, and government critics have suggested that the country should set up its own strategic petroleum reserve to buffer against supply shocks.But according to Raphael Capinpin, Executive Director of the Philippine Institute of Petroleum, the financial and logistical requirements for such a safety net are massive. He estimated that a 90-day inventory would cost approximately P176 billion for the crude oil alone.&quot;Strategic petroleum reserves are managed by the government because it entails money,&quot; Capinpin explained. &quot;You would need about 73 storage tanks--that’s just products and tanks. Then there is the land, and who will manage it? Can oil companies invest P176 billion and just wait for the crisis to happen?&quot;Atty. Jay Layug of the Philippine Energy Research &amp; Policy Institute agreed that reserves are not easy to maintain because of the high cost of acquisition and storage. Instead, experts suggest the focus should shift to aggressive demand management.Atty. Layug suggested the government go beyond the 4-day workweek. &quot;We should also consider online classes so we can prolong whatever supplies we have at this time,&quot; he said. Layug also urged Congress to provide incentives for households to install solar panel systems to reduce the overall burden on the energy grid.The urgency for a solution comes as the geopolitical situation worsens. Capinpin warned that military strikes on energy facilities and the ongoing blockade of the Strait of Hormuz will further exacerbate the situation.Former Energy Secretary Jericho Petilla, meanwhile, believes the Philippines is facing a &quot;price problem&quot; rather than a “supply problem”.&quot;The supply will be there, but the price will be very high to the point people will rethink how they use it,&quot; said Petilla, who predicts a drop in the number of vehicles on the road in the coming weeks.Signs of a slowing economy are already visible. Alexander Escucha, President of the Institute for Economic Development and Econometric Analysis (IDEA), noted that traffic volume is decreasing as motorists cut unnecessary trips. He also sees a change in consumer behavior.  Despite the grim outlook, Petilla remains optimistic about the country&#x27;s resilience. &quot;The most important thing is to survive the crisis,&quot; he said. &quot;Whether it’s COVID or war… we’ve always survived.&quot;<div><iframe width="950" height="633" src="https://www.youtube.com/embed/rxHxrHfouZM?si=GczGApsx5JoTXQEv" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

Many politicians, lawmakers, and government critics have suggested that the country should set up its own strategic petroleum reserve to buffer against supply shocks.

Many politicians, lawmakers, and government critics have suggested that the country should set up its own strategic petroleum reserve to buffer against supply shocks.

The P176-billion price tag: Should the Philippines maintain its own strategic oil reserves?

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The P176-billion price tag: Should the Philippines maintain its own strategic oil reserves?

ABS-CBN News,

Olivia Gan-Sy

Published Mar 23, 2026 11:50 AM PHT

Read More:

oil crisis

Strategic Petroleum Reserve

oil prices

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