Fuel Price Surge Sparks National Emergency as Indonesia's Neighbour Implements New Strategy

Philippine government plans to build a strategic oil reserve to shield itself from global energy supply shocks, particularly due to Middle East conflicts such as US-Iran tensions. The country heavily relies on oil imports. Energy Secretary Sharon Garin stated the government is preparing a state-managed strategic oil stockpile to bolster national energy resilience. Previously, a sharp fuel price surge caused by Middle East tensions led President Ferdinand Marcos Jr to declare a national emergency. According to AFP, the national reserve aims to add at least 30 days’ worth of petroleum products, beyond the mandatory 30-60 days’ stock required from local oil companies. The project requires a $81 million investment to build a single storage tank with a capacity of 500,000 barrels, equivalent to the country’s daily oil consumption. Funding will come from state-owned Philippine National Oil Co and the sovereign wealth fund Maharlika Investment Corp. ‘This ensures we don’t run out of oil or panic whenever conflicts arise elsewhere, and have stable supply guarantees for several days,’ Garin said in a press conference on Monday, 1 May 2026. She added Japan supports the project, with Tokyo ready to assist through feasibility studies and capacity building for the strategic oil storage system. ‘We are pleased to note Japan will support this initiative by conducting necessary feasibility studies and providing capacity enhancement for storage system development,’ she said, noting Marcos secured the commitment during his state visit to Tokyo last month. As a nation heavily dependent on energy imports, the Philippines is vulnerable to global oil price volatility. Therefore, establishing a strategic oil reserve is seen as a crucial step to mitigate the impact of geopolitical crises on domestic economic stability.