MANILA, May 29 (Xinhua) -- To cushion the impact of skyrocketing oil prices, the Philippines is planning to import oil from non-OPEC countries including Russia and the United States.
Philippine authorities have said the government is currently in talks with Thailand and Japan "to guarantee supply security and strategic oil stockpiling."
The Department of Energy (DOE) bared on Tuesday the Philippines' "two-pronged strategy" to source petroleum products from Russia and other non-OPEC countries "to establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the international market."
The Organization of Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 oil-producing nations.
"The government is aware of the country's vulnerabilities to abrupt changes in the international oil situation and impending threats on the same, hence we are formulating various strategies to address those vulnerabilities to cushion the impact for our consumers," Energy Secretary Alfonso Cusi said on Monday.
Already, Cusi has tasked the Philippine National Oil Company-Exploration Corporation (PNOC-EC) to prepare for oil trading and retail to provide competition to existing oil industry players and pacify domestic oil prices.
Cusi, also the ex officio chairman of the PNOC-EC, directed and authorized the PNOC-EC "to engage in the retail or selling of petroleum products sourced from Russia and non-OPEC members to independent petroleum dealers and to individual public consumers."
Presidential Spokesperson Harry Roque said on Monday that the government is reviewing all possible options to alleviate the impact of the rising global crude costs on Philippine consumers.
Roque said the different government agencies are expected to submit their reports and suggestions on the matter during their upcoming cabinet meeting with the president next month.
Among the measures being considered by the government is to import cheaper petroleum products from non-OPEC nations like Russia and the U.S., Roque said.
The slew of world oil price increases and the depression of the Philippines peso sent inflation to surge in April this year.
Currently, the DOE only requires oil companies to maintain a Minimum Inventory Requirement (MlR) of in-country stocks equivalent to 30 days of crude and products for refiners, 15 days of products for importers/bulk suppliers, and seven days of liquefied petroleum gas (LPG) stocks for LPG players.
The creation of the Strategic Petroleum Reserve (SPR) is founded on a number of joint international studies, according to the DOE-Oil Industry Management Bureau.
In 2003, the Philippines and Thailand signed a memorandum of understanding to jointly study, investigate and assess the possibilities of cooperation, including the identification of strategic locations for oil stockpiling and distribution points.
Another study was conducted in 2004 by the U.S. Department of Energy to assist the country in assessing the options and potentials for strategic oil stockpiles as well as give recommendations to enact legislation pertaining to the oil stockpiling program.
Japan's Ministry of Economy, Trade and Industry assistance also came to the Philippines in 2004 to conduct a feasibility study on the development of a master plan and comprehensive scheme for oil stockpiling.
On top of the two mentioned solutions, the DOE continues to advocate exercising "efficient and smart ways" on oil consumers' use of petroleum products, such as managing vehicle trips and its operations.