Marcos pushes oil-sharing, stockpiling to curb shocks

By Chloe Mari A. Hufana, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday called for the immediate activation of a regional oil-sharing mechanism and joint stockpiling initiatives, warning that Asia’s exposure to supply disruptions could prolong inflation and slow growth without stronger coordination.

“The energy disruptions of 2026 are testing Asia’s resilience,” Mr. Marcos said at the Asia Zero Emission Community Plus online summit convened by Japan. “However, I believe they also are creating an opportunity for us to build the regional energy security architecture that our region has long needed.”

He said the Philippines is preparing to diversify crude sourcing and expand fuel reserves as supply routes from the Middle East remain vulnerable following the US-Israel war on Iran.

He urged participating economies to back a regional study on joint oil stockpiling, building on research by the Economic Research Institute for ASEAN and East Asia (ERIA).

“ERIA has already identified viable models — national initiatives, ticket stockpiling arrangements and joint stockpiling with crude exporters,” he said. “Let us provide them the political commitment to move these from research to negotiation to implementation.”

The Philippines, an import-dependent economy, has been hit by rising oil prices since late February, contributing to inflation and increasing pressure on households and businesses.

Mr. Marcos also called for the early activation of the Association of Southeast Asian Nations (ASEAN) Petroleum Security ‌Agreement, saying Manila is willing to host or co-chair the first full emergency simulation exercise under the agreement.

He said member economies should establish a mutual recognition mechanism for emergency fuel allocation protocols to ensure faster response during supply disruptions.

“So that, when a member is in distress, the administrative pathways for receiving assistance have already been clearly established and time is not lost to procedural uncertainty,” he said.

Within ASEAN, Indonesia, Malaysia, Thailand, Vietnam and Brunei are among the region’s oil producers, while countries such as the Philippines rely heavily on imports.

Domestically, the government is moving to strengthen energy security through higher stockholding requirements and long-term supply planning.

Authorities are working to raise mandatory petroleum reserves to 30 days from 15 days, and for liquefied petroleum gas (LPG) to 21 days from seven days.

The government is also fast-tracking the establishment of a strategic petroleum reserve to provide a buffer against supply shocks.

On the demand side, Mr. Marcos said the Philippines is pursuing transport electrification, energy efficiency measures and higher biofuel blending to reduce dependence on imported fuel.

“We cannot wait for the next crisis to act,” he said. “We must build resilience now as the urgency of this moment is clear.”

The Philippines is under a year-long state of national energy emergency as disruptions linked to the Middle East war threaten fuel supply and price stability.

The government has sought alternative oil sources, including nontraditional suppliers in South America, while negotiating supply arrangements with partners.

Congress earlier granted the President authority to suspend excise taxes on petroleum products, but Mr. Marcos has so far limited the relief to LPG and kerosene.

He has yet to decide on possible tax cuts for diesel and gasoline, which have a broader impact on transport and inflation.

To cushion vulnerable sectors, the government has rolled out cash and fuel subsidies for transport workers and low-income households, while coordinating response measures through the Unified Package for Livelihoods, Industry, Food and Transport Committee.

Inflation rose to 4.1% in March, nearing a two-year high, largely driven by higher fuel costs. Some lawmakers have proposed suspending the 12% value-added tax on petroleum products, but the administration has flagged its importance as a source of funding for government programs.