Senate President Pro Tempore Panfilo Lacson on Thursday expressed support for the proposed expansion of the country’s oil storage facilities under the Maharlika Investment Corporation (MIC), describing it as a strategic measure to strengthen the Philippines’ energy security amid global supply uncertainties.
Lacson, however, cautioned that while the initiative could help prevent fuel shortages, it may not necessarily lead to lower pump prices due to the investment-driven structure of the implementing agency.
“This is one good move to obviate the possible shortage of our domestic supply of oil. However, I cannot help but be apprehensive since the MIC is an investment entity that is designed to earn profit,” Lacson said in a statement.
He further noted that the operational and storage costs associated with the project would likely be shouldered by consumers rather than used as a mechanism to reduce fuel prices.
“Hence, while it may help ensure continuous supply of oil, it may not be able to help bring down the prices of oil products,” he added.
The oil depot expansion plan was presented during a House committee hearing on Wednesday by Rafael Consing Jr., President and CEO of the Maharlika Investment Corporation. The project is structured as a public-private partnership involving multiple stakeholders.
Under the proposal, the Philippine National Oil Company (PNOC) will provide land and existing infrastructure, while the MIC together with private investors will finance construction and development. Private partners will be tasked with managing the day-to-day operations of the storage facilities.
While acknowledging the potential benefits of the project in ensuring stable fuel supply, Lacson urged economic managers to explore additional policy tools to protect consumers from global oil price volatility.
He cited the need to study approaches used by other economies, including Taiwan, which implement mechanisms designed to cushion sudden spikes in fuel prices beyond conventional subsidy schemes.