PH-Japan fuel stockpiling plan targets supply resilience

The fuel security plan advances as global supply disruption pressure builds.

The Philippines’ Department of Energy (DOE) has entered into a partnership with Japan’s Ministry of Economy, Trade, and Industry (METI) to develop a national strategic petroleum reserve system and wider regional energy security initiatives.

The move follows discussions during President Ferdinand R. Marcos, Jr.’s state visit to Japan on 28 May 2026.

The pact will advance work on national fuel stockpiling systems and a proposed ASEAN-wide joint stockpiling framework under the Partnership for Wider Energy and Resources Resilience in Asia (POWER Asia).

Energy Secretary Sharon S. Garin said the initiative aims to strengthen long-term fuel security and ensure supply continuity during disruptions in global energy markets, adding that “energy security is a national priority.”

The Energy department is working with the Philippine National Oil Company (PNOC) and the Maharlika Investment Corporation (MIC) to assess options for a government-supported Strategic Petroleum Reserve (SPR) programme.

“Under the planned arrangement, PNOC will provide technical and industry expertise, whilst MIC will assist in evaluating financing structures and investment options for the project,” the DOE said.

The proposed SPR will complement existing commercial fuel inventories held by private companies, with industry stocks currently covering around 15 days of mandatory requirements, whilst actual inventories often extend to about 30 days depending on market conditions.

The Philippine government is evaluating a separate reserve intended for use during major supply disruptions, geopolitical instability, natural disasters, and other emergencies affecting fuel availability.

Feasibility studies, site assessments, financing models, and implementation plans are under development, with phased implementation expected.

A technical mission involving Japanese government agencies and private sector partners will visit the Philippines later this year to support planning and feasibility work, with Japan providing technical assistance, feasibility studies, and capacity-building support.

“As ASEAN Chair this year, the Philippines has been actively promoting discussions on regional energy security and exploring opportunities to host future strategic stockpiling facilities should ASEAN member states pursue the initiative,” the DOE said.

Global market conditions and recent events highlight the need for strategic inventories to maintain fuel supply for transport, industry, food production, and households during disruptions.

The department said the initiative forms part of the government’s energy security agenda and aims to strengthen resilience against external shocks.