The Philippines is planning to establish its first state-owned strategic fuel stockpile, aiming to double the nation's energy buffer to 60 days to insulate the economy from global supply shocks, the Department of Energy (DOE) said.

In an interview, Energy Secretary Sharon Garin said the multi-year initiative will require an estimated initial investment of ₱30 billion.

To fund the program without tapping the national budget, Garin said DOE is in talks with the Maharlika Investment Corp., the country’s sovereign wealth fund, and is seeking technical and financial backing from Japan.

Currently, the Philippines relies on a 30-day fuel inventory held almost entirely by private commercial oil companies. The government wants to build a parallel, state-controlled strategic petroleum reserve to add at least another 30 days of supply security.

The government intends to minimize its reliance on the General Appropriations Act, or the national budget, for the project. Instead, the department plans to deploy a financing model that mixes state participation with private capital and sovereign wealth funding.

The state-run Philippine National Oil Co. (PNOC) is already in preliminary discussions with Maharlika to structure the partnership and secure funding.

Japan has also signaled strong interest in supporting the program and potentially developing a wider regional fuel reserve. A delegation of Japanese experts is scheduled to arrive in Manila between late June and July to conduct technical, legal, and financial evaluations. The team will assist the energy department in designing a sustainable conceptual framework for the stockpiles.

The DOE is looking at the southern region of Mindanao and the industrial province of Bataan as potential hubs for the storage facilities. Final locations remain subject to detailed feasibility studies that will evaluate regional logistics, storage capacity, and infrastructure costs.

The push for a state-controlled buffer comes as the Philippines, a net oil importer, seeks to mitigate its vulnerability to volatile global commodity markets and maritime supply disruptions.

Implementing a strategic reserve would align Manila with other major Asian economies that maintain state-managed stockpiles to ensure domestic economic stability during international energy crises.