Solon proposes to have oil storage facility in PH    

A member of Congress has laid out a proposal to establish an oil storage facility in the Philippines, as a result of continuous increases in the price of fuel. 

Rep. Luis Raymund Villafuerte is batting for a national oil reserve to cushion the impact of fuel price hikes

Camarines Sur Rep. Luis Raymund Villafuerte recommends that the incoming administration of President-elect Ferdinand Marcos Jr. put up a national strategic petroleum reserve (SPR). The congressman said that as a storage facility that would allow government to bring in additional inventory, this was one way of shielding the public from the impact of future price surges.  

Villafuerte lamented that the plan had languished so far at the Department of Energy (DOE). “I hope the BBM (Bongbong Marcos) administration will take a long look at the SPR plan, which has unfortunately been stuck in the planning stage at the DOE for over two years now,” he said. 

The solon emphasized that the SPR should be implemented in anticipation of future conflicts, supply problems, and other geopolitical developments that could adversely affect local fuel prices. 

The DOE wants to regain its authority to intervene when fuel prices go up

According to Energy Undersecretary Gerardo Erguiza Jr., that the DOE will seek a congressional review of the Oil Deregulation Law as part of efforts to reduce petroleum prices. “We wrote to Congress to give priority to revisit and review the oil deregulation law so that the government will have the power to do something in this kind of situation,” he said. 

In the absence of the DOE’s authority to intervene in petroleum pricing, the agency has so far resorted to requesting oil firms to provide discounts to the public. 

Erguiza’s proposal was supported by Rep. Juan Miguel Arroyo, who chairs the House Committee on Energy. Arroyo said that the proposed amendments to Republic Act 8479 or the Downstream oil Industry Deregulation Act would prevent oil companies from raising prices on old stock, while encouraging competition and investments.   

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