Delate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session SENATE RECEIVED BY: Senate Bill No. 2040 Introduced by Senator Erwin T. Tulfo AN ACT ESTABLISHING THE PHILIPPINE STRATEGIC PETROLEUM RESERVE, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE For many Filipinos, rising fuel prices mean less food on the table and less money for daily necessities. A jeepney driver who once brought home enough to support his family now sees a significant portion of his income spent on diesel, leaving little for basic household needs. This reality underscores the Philippines' vulnerability to global oil shocks. According to the Department of Energy, the country relies heavily on Middle East crude, which accounts for roughly ninety-eight percent (98%) of its crude oil imports.' The 2026 global oil crisis highlighted this risk, as supply disruptions in the Middle East caused crude prices to surge and national fuel reserves to fall to critical levels. Yet unlike many countries that ' Naguna, John Lester, "How the Strait of Hormuz closure affects our oil prices", March 05, 2026, retrieved from: https://pia.gov.ph/news/how-the-strait-of-hormuz-closure-affects-our-oil-prices/, retrieved on April 12, 2026.
maintain strategic petroleum reserves, the Philippines continues to rely mainly on private commercial inventories. This bill seeks to establish the Philippine Strategic Petroleum Reserve, a government-controlled emergency stockpile of crude oil and petroleum products that will protect the country from supply disruptions and sudden price spikes. By creating a national petroleum buffer, the Philippines strengthens its energy security, protects consumers, and builds economic resilience. In view of the foregoing, the immediate passage of this bill is earnestly sought. ERWINT. TULFO
Senate Office of the scaretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session APR 13 P3:33 RECEIVED BY: SENATE Senate Bill No. 2040 Introduced by Senator Erwin T. Tulfo AN ACT ESTABLISHING THE PHILIPPINE STRATEGIC PETROLEUM RESERVE, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the
2 "Philippine Strategic Petroleum Reserve Act."
SEC. 2. Declaration of Policy. - It is hereby declared the policy
5 of the State to ensure the stability, security, and reliability of the 6 national energy supply in order to protect the economy and welfare of 7 the Filipino people from disruptions in the global petroleum market.
SEC. 3. Definition of Terms. - As used in this Act, the following
10 terms are defined as follows: a) Days of National Consumption refers to the average daily national petroleum consumption based on verified day from the Department of Energy for the preceding calendar year.
b) Petroleum products refer to gasoline, diesel, kerosene, jet fuel, liquefied petroleum gas, and other refined petroleum products as determined by the Department of Energy (DOE); c) Strategic Petroleum Reserve refers to a government-owned and managed stockpile of crude oil and refined petroleum products maintained for emergency use; d) Supply disruption refers to any sudden reduction in the availability of crude oil or petroleum products resulting from geopolitical conflict, natural disasters affecting fuel logistics, global market shock, or other extraordinary circumstances affecting the national energy and oil supply.
SEC. 4. Establishment of the Philippine Strategic Petroleum
16 Reserve. - There is hereby established a Philippine Strategic Petroleum 17 Reserve (PSPR) which shall consist of emergency stockpiles of crude 18 oil and petroleum products maintained by the DOE for the purpose of safeguarding national energy security. The strategic petroleum reserve shall be designed to complement existing commercial inventories maintained by the private oil industry participants and shall serve as an emergency buffer in times of supply disruption.
SEC. 5. Strategic Reserve Levels. - The PSPR shall target to
maintain petroleum stocks equivalent to at least ninety (90) days of the country's average national consumption. The President of the Philippines, upon the recommendation of the Secretary of Energy, may increase the reserve level based on the national energy security requirements.
SEC. 6. Strategic Petroleum Storage Facilities. - Petroleum
stocks under the PSPR shall be securely stored through cost-effective infrastructure, utilizing a combination of government-owned storage terminals, leased commercial facilities, underground storage structures 37 where technically feasible, floating storage systems, and other viable
1 storage mechanisms. The DOE shall ensure that strategic petroleum 2 reserves are geographically distributed across key regions of the 3 country.
SEC. 7. Acquisition of Petroleum Stocks for the Philippine
6 Strategic Petroleum Reserve. - Petroleum stocks for the PSPR may be 7 acquired through direct government procurement, government-to- 8 government agreements, long-term supply contracts, stock exchange or 9 swap arrangements, and other mechanisms determined by the DOE 10 taking into account favorable market conditions to optimize the cost of 11 reserve development. The DOE shall guarantee that any crude oil acquired for the PSPR meets the specific technical requirements necessary for efficient processing by existing domestic petroleum refineries.
SEC. 8. Conditions for Emergency Release. - Petroleum from the
PSPR may be released only through the written authorization of the President of the Philippines upon the recommendation of the Department of Energy under the case of supply disruption or the declaration of a national emergency.
SEC. 9. Oversight and Reporting. - The DOE shall submit an
annual report to the Joint Congressional Energy Commission (JCEC) detailing the status of the PSPR, including the stock levels, storage capacity, financial expenditures, and acquisition strategies. All emergency releases shall be reported to the JCEC within fifteen (15) days from the initiation of the release.
SEC. 10. Lead Agency. - The DOE shall be the lead agency in
the implementation of this Act in coordination with the Philippine National Oil Company, the National Disaster Risk Reduction and Management Council, the Department of Finance, and other relevant government agencies.
SEC. 11. Implementing Rules and Regulations. - Within ninety
(90) days from the effectivity of this Act, the Department of Energy, in
1 coordination with the Philippine National Oil Company and the 2 National Disaster Risk Reduction and Management Council, shall 3 promulgate the necessary rules and regulations for the effective implementation of this Act.
SEC. 12. Appropriations. - The amount necessary for the initial
> implementation of this Act shall be charged against the current year's 8 appropriations of the DOE. Thereafter, such amount shall be included 9 in the annual General Appropriations Act.
SEC. 13. Separability Clause. - Should any provision or part of
12 this Act be declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable from the invalid ones, shall remain in full force and effect.
SEC. 14. Repealing Clause. - All laws, decrees, executive orders,
issuances, rules and regulations or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation. Approved,