The Department of Energy (DoE) is seeking congressional authority to address energy security concerns through proposed amendments to the Oil Deregulation Law. The amendments aim to give the DoE the power to seize hoarded petroleum products, impose stiffer penalties on profiteers, and require a strategic fuel reserve.
At a recent Senate Energy Committee hearing, Energy Secretary Sharon S. Garin emphasized the need for the DoE to have direct authority to act against fuel hoarding. She noted that the department had to rely on other laws to address the issue, citing the use of show-cause orders and the legal authority of other government agencies.
Under the proposed amendments, the DoE would be authorized to seize hoarded petroleum products and impose fines ranging from P250,000 to P500,000 or imprisonment of six months to two years on violators. The amendments would also make failure to maintain the minimum fuel inventory a punishable offense, carrying fines of P250,000 to P500,000, rising to P500,000 to P1 million during a declared emergency.
The DoE is also seeking authority to require a minimum national fuel stock equivalent to 60 days of supply, subject to adjustment based on energy security needs and available resources. This would allow the department to better prepare for potential disruptions to oil markets.
Senate President Sherwin T. Gatchalian expressed support for the proposal, citing the need for greater transparency in fuel pricing. He warned that without visibility into the pricing and cost components of fuel prices, oil companies may charge consumers unfairly.
The DoE is moving ahead with plans to establish a national strategic petroleum reserve in coordination with the Philippine National Oil Co. However, funding remains a challenge, and the agency is considering funding from the Maharlika Investment Corp. and the national budget.
The construction of a one-million-barrel storage facility is expected to take about a year, including permitting with the Department of Environment and Natural Resources. The government is targeting completion by the fourth quarter of 2027 or early 2028.
The Philippines declared a national energy emergency on March 24 after the US-Israel war on Iran disrupted global oil markets. As of June 26, the country's fuel inventory stood at 41.16 days, including kerosene stocks of 212.41 days, jet fuel stocks of 70.83 days, and gasoline stocks of 42.19 days, according to DoE data.
