The Department of Energy (DOE) is racing to increase the country’s oil buffer stock as it plans to roll out an additional budget to secure up to two million barrels of diesel to reduce the risk of a thinning fuel supply.

In a media briefing on Tuesday, March 24, Energy Secretary Sharon Garin said the government is set to allot ₱20 billion to purchase around one to two million barrels of diesel inventory from alternative and legitimate sources of oil producers. This quantity is said to be enough for five days.

“It’s very expensive… But what eventually will happen is we also sell the buffer so we can use the money to buy more. Hopefully, it stays at that amount because we’re not in the business to retail gas or sell [them]. We’re just doing this for buffering,” she clarified. “If we need to order more, that’s probably because we need to supply the other oil companies.”

The DOE also assured that the agency is actively assessing and purchasing more fuel supply to replenish inventory through diplomatic channels within Southeast Asia and the broader region, including Japan, after it earlier stopped imports to support its domestic supply. The country recently announced that it would begin releasing oil from joint reserves amid looming geopolitical risks.

According to the Energy chief, the DOE has contacted alternative sources with the help of the Department of Foreign Affairs (DFA), ambassadors, and through ministerial discussions.

“We have been assured by these countries on the consistency of their supply as far as the existing contracts or the long-term contracts that our oil companies have. That is given that the situation is—we have to understand also their situation. But so far, as of today, they’ve assured us of our deliveries of our orders,” she elaborated.

“I just don’t want to preempt yet because they are still under negotiations. But we’re diversifying our sources.”

Even as the DOE chief assured that the country will not experience any supply depletion, she reported that state-run Philippine National Oil Co. (PNOC) has already contracted 400,000 barrels this week and is set to obtain another 600,000 barrels.

Based on data from the Oil Industry Management Bureau (OIMB), the Philippines currently has about 45 days’ worth of average supply, higher than last week’s estimate of below the 40-day mark. For gasoline, there are about 53 days’ worth of inventory; diesel, 45 days; while kerosene, despite having the highest price spikes, has the largest inventory at 97 days.

If hoarding and profiteering activities are addressed, Garin said the current supply would be sufficient to last until May. The DOE added that the government continues to prepare for worst-case scenarios through additional procurements.

Apart from the government, some private oil firms are already receiving additional supplies this week, while others have confirmed sufficient importation.

This week, official DOE data showed that diesel prices have increased by ₱15 to ₱18 per liter, bringing pump prices to around ₱107 to ₱134 per liter.

Kerosene is also set to climb by ₱12 to ₱22 per liter, with pump prices reaching between ₱112 and ₱166 per liter, while gasoline prices have risen by ₱8 to ₱12 per liter, bringing prices to around ₱87.69 to ₱112 per liter.

Prices vary across oil companies, while some have abandoned price staggering and announced one-time price hikes for the week.