Metro Manila (CNN Philippines, September 18) — The recent attack on Saudi Arabia’s oil facilities highlights the need for the government to maintain fuel reserves, Energy Secretary Alfonso Cusi said Wednesday.
Although local supply remains adequate, the Energy Secretary said having a government-controlled stockpile would make sure fuel is readily available regardless of stocks from private oil companies.
Drone strikes hit Saudi Aramco’s oil processing facilities in Abqaiq and Khurais Saturday. This disrupted about half of the kingdom’s oil capacity, or five percent of the daily global supply.
Saudi Arabia supplies about 9.8 million barrels of oil per day. Saudi’s Energy Minister Prince Abdulaziz bin Salman said the strikes affected 5.7 million barrels of crude oil and gas production.
READ: Oil prices tumble after Saudi Arabia says production is coming back online
Cusi cited reports that the United States and South Korea have announced willingness to tap into their fuel reserves to augment world supply should Saudi Arabia’s production take long to recover.
“In the Philippines, unfortunately, reserves are in the hands of the private sector. What the government is trying to do, we want to have strategic supply that we can use in case of emergency,” Cusi said during the Kapihan sa Manila Bay forum.
Cusi also assured the public there’s enough fuel supply to meet demand, but pump prices will be based on market rates.
“We have the supply, the inventory is there. Kaya lang, maaapektuhan tayo sa pagsipa ng presyo. But the good news is Saudi Arabia made the announcement that they are able to restore the production,” the Cabinet official said, pointing out that world crude prices shot up earlier this week as a knee-jerk reaction to the Saudi attack.
He added that higher pump prices will be felt “next week,” but hopes that these will “correct” to offset the spike.
READ: PH oil firms assure ample domestic supply after Saudi attack
“Sa strategic reserve, hindi naman natin kailangan niyan ng extreme situation. We are just looking [ahead] that in case of any disruption, the government is there and equipped to alleviate the situation,” Cusi said. “Kailangan meron tayo niyan para in case mangyari yun, meron tayong mapaghuhugutan ng oil.”
The buffer stock can be deployed for the use of the military, police, government offices, and hospitals as needed, he added.
Among the issues delaying the creation of a state-run oil reserve facility is the importation of fuel and storage, which are still a work in progress. The Philippine National Oil Company has beek tasked for this.
