Amid the increasing risk of a potential oil supply shortage and thinning buffer stocks, President Ferdinand R. Marcos Jr.’s economic team is pushing for the passage of a law that would allow the Philippines to import biofuels from global markets once pump prices breach a set threshold, Finance Secretary Frederick D. Go said.

Go, the Marcos Jr. administration’s chief economic manager, told the private sector on Tuesday, March 17, that the economic team has requested lawmakers to pass a bill that would permit such importation of the resource.

This measure is expected to complement the Cabinet-level Development Budget Coordination Committee’s (DBCC) proposal to grant the President the authority to lower excise taxes on fuel when the cost of Dubai crude oil exceeds $80 per barrel for a month.

According to Go, the DBCC is seeking approval from Congress to “pass the new biofuels bill that will allow the country or oil companies to import biofuels from global markets in the event that pump prices exceed five percent of what pure fuel—diesel or gasoline—would cost.”

In particular, the biofuels the government eyes for importation include palm oil, methyl ester, and ethanol. Since diesel and gasoline are mixed with biofuels, cheaper imported supplies of these biofuels are available worldwide.

“Likewise, we’re seeking Congress’ approval to remove certain restrictions for oil companies to acquire these biofuels from global markets,” the Finance chief added.

Go also disclosed that he had a dialogue with private oil companies over the weekend to discuss additional measures to diversify fuel sourcing by expanding the Philippines’ supplier countries. He said the Philippines currently sources fuel from just four markets, namely South Korea, Japan, Singapore, and China. As a precautionary measure, the Finance chief assured that the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) will be purchasing two million barrels of oil from global markets to thicken the country’s oil buffer stock.

He said the state-run oil firm has already started the procurement process, and “we should be able to secure about two million barrels of oil anytime now to help dispel fears of a potential oil shortage.”

Prior to the flare-up of the military conflict between the United States (US)-backed Israel and Iran, the Philippines had nearly two months’ worth of fuel inventory. The war has been ongoing for more than two weeks now, which reportedly slashed the buffer coverage to 38 days.

Overall, Go said the government has already put in place precautionary measures to tackle the persisting risks to inflation triggered by Middle East tensions.

He said the Marcos Jr. administration is prioritizing immediate relief for vulnerable sectors by fast-tracking fuel subsidies for transport groups, farmers, and fisherfolk, while also rolling out the “libreng sakay” program to ease commuting costs and releasing funds for assistance to individuals in crisis situations (AICS).

Moreover, the government has already coordinated with domestic oil companies to stagger increases in oil prices. For its part, the government has imposed a four-day workweek in a move to conserve energy.