Bicol Saro Party-list Representative Terry Ridon has cautioned against the aggressive stockpiling of petroleum products purchased at elevated prices, warning that such a strategy could pose financial risks if global conditions suddenly shift.
The lawmaker stressed the importance of careful planning in building fuel reserves, particularly as the government aims to extend supply coverage to as much as 90 days. He noted that while increasing reserves is essential, procurement timing and costs must be aligned with ongoing geopolitical developments.
Ridon pointed out that buying fuel at peak prices could backfire if tensions in the Middle East ease, leading to a drop in global oil prices. He explained that a sudden ceasefire or peace agreement could significantly lower costs, leaving the country with expensive запасes bought at unfavorable rates.
He underscored the need to strike a balance between ensuring supply security and maintaining economic prudence. To achieve this, Ridon urged the government to consult economists and industry stakeholders in determining the most strategic approach to fuel procurement.
The legislator also raised the issue of fuel rationing, emphasizing the need for clear policies should such measures be considered. While acknowledging that rationing may be part of long-term contingency planning, he questioned whether it is necessary at this stage.
Ridon further stressed that any rationing mechanism must clearly define the supply threshold that would trigger its implementation.
For him, such measures should only be activated when reserves fall significantly below the current 50-day buffer to avoid unnecessary restrictions while still preparing for potential prolonged instability.