By Victor V. Saulon
Sub-Editor
THE Department of Energy (DoE) said it was planning to source petroleum products from Russia and other countries that are not members of the oil cartel Organization of the Petroleum Exporting Countries (OPEC).
It said the move was meant to “establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the international market.”
“The government is aware of the country’s vulnerabilities to abrupt changes in the international oil situation and impending threats on the same, hence we are formulating various strategies to address those vulnerabilities to cushion the impact for our consumers,” Energy Secretary Alfonso G. Cusi said in a statement.
He said the DoE has “two-pronged strategies” on its oil stockpiling.
Mr. Cusi said he had tasked the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) to prepare for oil trading and retail “to provide competition to existing oil industry players and pacify domestic oil prices.” The secretary is ex-officio chairman of PNOC-EC.
Through a board resolution, the company has been directed and authorized to engage in the retail or selling of petroleum products sourced from Russia and non-OPEC members to independent petroleum dealers and to individual public consumers.
At present, the department requires oil companies to maintain a minimum inventory requirement of in-country stocks equivalent to 30 days of crude and products for refiners. It also requires 15 days of products for importers and bulk suppliers, and seven days of liquefied petroleum gas (LPG) stocks for LPG players.
The DoE, citing its Oil Industry Management Bureau, said the creation of the strategic petroleum reserve is founded on a number of joint international studies.
