PHL to import 240M liters of diesel from Russia

The Philippines is importing 240 million liters of diesel from Russia to beef up the country’s petroleum reserves and help mitigate the impact of surging oil prices in the world market, an official of the Department of Energy (DOE) said Thursday.

DOE Undersecretary and spokesperson Wimpy Fuentebella said the Philippine National Oil Company-Exploration Corporation (PNOC-EC) is looking at a government-to-government deal with Russia for the delivery of diesel which would form part of the Philippines’ strategic petroleum reserve.

It was not immediately clear when the petroleum products would arrive in the country which Fuentebella said would cover three days of the country’s requirements.

The DOE has tasked the PNOC-EC to engage in retail trade or selling petroleum products sourced from Russia and other nations outside of the Organization of Petroleum Exporting Countries (OPEC) to independent petroleum dealers and individual public consumers in order to foster competition and bring down local pump prices.

The government is now in talks with private oil companies, which have existing facilities such as storage and gas stations to make non-OPEC fuel available to consumers.

PNOC-EC may enter a supply agreement, form a joint venture, and perhaps put up its own retail stations to compete with oil industry players.

“The rippling effect is the most important one to enhance competition,” Fuentebella told reporters in Malacañang.

The DOE currently requires oil companies to maintain a minimum inventory requirement of in-country stocks equivalent to 30 days of crude and products for refiners, 15 days for importers and bulk suppliers, and seven days of liquefied petroleum gas for LPG players.

Apart from sourcing oil from non-OPEC members, the DOE is also advocating efficient consumption of petroleum products, such as managing vehicle trips and its operations. —VDS, GMA News