MANILA, Philippines - After handing out fuel subsidies to tricycle and jeepney drivers, government will start stockpiling fuel to make sure that the country will not run out of supplies in case the political turmoil worsens in some oil-producing countries.
“As we have seen, if something happens in Libya, Bahrain, or even Egypt, we pay the price-in the form of higher fuel cost,” President Benigno Aquino III said. “Like strategic reserves in other countries, we will accumulate a stockpile of fuel for the country's use in times of extraordinary need.”
Starting in May, the Philippine National Oil Company - Exploration Corporation (PNOC-EC) will pay around P2.4 billion to acquire 50 million liters of diesel.
“Hindi talaga karamihan yan, pero gusto lang naming makasiguro na lagi tayong may minimum supply ng krudo sa bansa,” said Secretary Ricky Carandang of the Presidential Communications Development and Strategic Planning Office.
An economist, however, questioned the move.
UP School of Economics Professor Ben Diokno said that aside from being expensive, stockpiling does not address the real problem, which is high oil prices, and not the lack of supply.
“Iyung oil companies, on their own, may stockpile sila. Di naman magkakaubusan,” he said. “To me it's another senseless solution. Bababa ba ang presyo sa pump? I don't think so.”
Carandang, however, explained the government’s decision.
“Alam kong mas immediate na problema yan… pero may mga long-term solutions na tayo dyan, gaya ng unti-unting pag-shift ng mga sasakyan to natural gas para di na tayo aasa sa langis,” he said. – Report from Chiara Zambrano, ABS-CBN News; ANC
