The Philippines government is looking to build petroleum reserves to protect against oil supply-related disruptions amid the ongoing Middle East conflict, Business World reported Tuesday.
With a large dependency on the Middle East for oil imports, the region has witnessed increasing fuel prices, a trend that is expected to ease this week.
Prices are likely to see a drop of at least 4.76 Philippine peso per liter for gasoline, 9.26 peso per liter for diesel, and 10.86 peso per liter for kerosene, the report said citing Energy Secretary Sharon S. Garin.
The authorities are planning to put in place a strategic petroleum reserve program, which includes the establishment of new stockpiling facilities, to further tackle the oil supply disruptions, the report said.
"This will be a more systematic and a more organized system, one that won't be reactive, as we will have our own reserves in the Philippines," Garin reportedly said.
The Department of Energy and state-owned Philippine National Oil Company and Maharlika Investment are looking into building reserves for at least an additional 30 days, according to Garin.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)