It's about time that the country establishes its own strategic petroleum reserve.

For this purpose, House Assistant Minority Leader Bagong Henerasyon (BH) Party-list Rep. Robert Nazal filed House Bill (HB) No. 8528, or the proposed Philippine Strategic Petroleum Reserve Act.

If and when enacted, the bill will create a government-managed emergency stockpile of crude oil and petroleum products that could be tapped during severe supply shocks, geopolitical crises or major disasters affecting fuel availability.

Such crisis has been unravelling as a result of the ongoing war in the Middle East, which has jacked up local pump fuel prices by double digits twice in as many weeks.

“Sa panahon ng tumitinding geopolitical tensions at panganib sa pandaigdigang suplay ng enerhiya, mahalagang magkaroon ang Pilipinas ng malinaw at matibay na mekanismo upang maprotektahan ang ekonomiya at kapakanan ng mamamayan,” Nazal said in the bill’s explanatory note.

(In a time of intensifying geopolitical tensions and risks to the global energy supply, it is crucial for the Philippines to establish a clear and robust mechanism to safeguard the economy and the welfare of its people.)

“Ang pagtatatag ng isang Philippine Strategic Petroleum Reserve ay magbibigay sa pamahalaan ng kakayahang tumugon sa mga krisis sa suplay ng langis at mapanatili ang katatagan ng transportasyon, suplay ng pagkain, at kabuuang ekonomiya ng bansa,” he added.

(The establishment of a Philippine Strategic Petroleum Reserve will provide the government with the capacity to respond to oil supply crises and maintain the stability of transportation, food supply, and the overall economy of the nation.)

The bill aims to establish a national emergency buffer against severe global oil supply disruptions, allowing the government to maintain strategic petroleum stocks that could be released during supply emergencies.

Nazal said recent geopolitical developments highlight the vulnerability of oil-importing countries like the Philippines to global supply shocks.

The ranking solon warned that geopolitical tensions and disruptions in major oil shipping routes could quickly affect domestic fuel prices and the broader economy.

“These events demonstrate how geopolitical developments occurring far from Philippine territory can immediately affect domestic fuel prices, transportation costs, and the broader national economy,” Nazal said.

HB No.8528 proposes the establishment of government-controlled reserves composed of crude oil and refined petroleum products, the development of geographically distributed storage facilities, and the creation of a Strategic Petroleum Reserve Fund to finance the acquisition and maintenance of emergency petroleum stocks.

Nazal said the proposed reserve would help cushion the country from sudden supply shocks that could disrupt transportation, food distribution and other vital sectors of the economy.

“Petroleum supply disruptions can have cascading effects throughout the economy,” he noted.