IMEE: PURSUE G2G OIL PROCUREMENT, DIVERSIFY SUPPLY

SENATOR Imee R. Marcos is urging the government to aggressively pursue direct government-to-government (G2G) oil procurement as a key strategy to cushion the impact of the ongoing global oil shock, criticizing the administration’s passive response two months into the crisis triggered by the US-Iran conflict.

Marcos said the government should buy oil directly from supplier countries and sell it at lower, controlled prices to abate the burden on Filipinos, especially hard-hit sectors such as transport workers, farmers and fisherfolk.

“Why hasn’t there been a G2G deal with Russia during the sanctions waiver period? The waiver was even extended to May 16, yet the government has remained idle. Even Petron, a private company, was able to secure 2.48 million barrels of Russian crude. If a private corporation can do it, why can’t the Philippine government?” she said.

Drawing from past experience, the senator noted that direct diplomacy enabled the Philippines to weather previous global oil shocks. “In the 1970s, the government didn’t just wait for the market to stabilize. We negotiated direct G2G oil imports at deeply discounted ‘friendly’ rates to abate the shocks of 1974 and 1979. This strategy worked then; why aren’t we doing it now?,” Marcos asked.

She also pointed out that several countries are already moving aggressively. “Indonesia is planning to import 150 million barrels of Russian crude this year; Sri Lanka fast-tracked direct G2G deals to address fuel shortages; while Vietnam, Thailand, and Malaysia are actively negotiating supply and investment agreements with Russia and other exporters such as Brunei,” she said.

The senator also noted that the country should benchmark against other oil-import-dependent nations and study how they are mitigating supply disruptions.

“Our government must have a sourcing strategy beyond traditional routes vulnerable to disruption, particularly the Strait of Hormuz, by shifting to non-Middle Eastern suppliers. At the same time, we should strengthen direct partnerships with regional producers like Malaysia, Brunei, and Indonesia instead of relying heavily on intermediaries in refining hubs such as Singapore, South Korea, and China,” Marcos said.

“The Iran war is a crisis all too real for most Filipinos. Sadly, we are bereft of the strong, decisive leadership that should lessen our people’s burdens from a global oil shock that will take years to resolve.” she ended.