Cebu, Philippines – Leaders of the Association of Southeast Asian Nations (ASEAN) agreed to expedite plans for a regional fuel reserve and emergency energy-sharing mechanism in response to the protracted Middle East conflict that has shaken oil supply stability and pushed fuel prices up.
Speaking during a press conference at the 48th ASEAN Summit in Cebu on May 8, President Ferdinand Marcos Jr. said regional leaders agreed to prioritize energy security.
“In the past two months alone, rising oil prices driven by the Middle East conflict have pushed up the cost of basic goods and placed ASEAN nationals in harm’s way around the world,” Marcos said.
A major focus of the summit discussions was on fuel security.
“First, we called for the expedited ratification of the ASEAN Framework Agreement on Petroleum Security, which ensures mutual support among Member States during supply shortages,” Marcos said.
The agreement seeks to establish a coordinated regional response during fuel disruptions and energy emergencies, allowing ASEAN member states to support each other during supply shortages.
Another initiative is a long-planned initiative aimed at electric power sharing.
“We pushed for the operationalization of the ASEAN Power Grid — connecting the electricity networks of all eleven member states to enable cross-border power trading, support renewable integration, and deliver more affordable electricity to nearly 700 million people,” the president said.
Marcos said ASEAN leaders also discussed establishing a regional fuel reserve system across products similar to the bloc’s emergency rice reserve mechanism.
“The one thing that we talked about that concerned fuel supply was a fuel reserve,” Marcos said.
“To put together a fuel reserve is something like the emergency rice reserve,” he added.
Marcos said the proposed petroleum reserve system across products ranging from crude oil to refined fuel such as jet fuel and gasoline.
“So that when such a thing happens again — hopefully it will never happen again but you never know — then there is a reserve that we can all avail of,” he added, referring to supply chain issues as a result of the US-Iran conflict.
The president said ASEAN members are facing various fuel supply situations, making regional coordination increasingly important.
“Some countries have a surplus of a certain kind of fuel, other people have a shortage, and we’re trying to balance that out,” Marcos said.
He acknowledged that ASEAN still needs to finalize the mechanics of the proposed reserve system.
“Is it going to be in one single place? Is it going to be scattered all over ASEAN?” Marcos said. “Who gets what? How do you pay for it? Do you pay for it? Is it an exchange? Do you do credit?”
The president said ASEAN leaders were united on the need to move quickly.
“We needed it last month. Forget about next month, six months, a year from now. We needed it yesterday,” Marcos said.
Asked about timelines for APSA and the ASEAN Power Grid, Marcos said member states are treating the initiatives with urgency.
“The understanding of everybody is that it is all ASAP. Everything is as soon as possible,” he said.
