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ENERGY PANEL OKAYS PETROLEUM RESERVE BILL

admin August 12, 2026

THE House Committee on Energy chaired by Palawan Rep. Jose Alvarez on Tuesday approved the unnumbered substitute bill seeking to establish the Philippine Strategic Petroleum Reserve (PSPR) System aimed at shielding the economy from the effects of disruptions in the global oil supply and sudden price spikes.

Committee Vice Chairperson and Murang Kuryente Party-list Rep. Arthur Yap, who presided over the meeting, explained that the substitute measure would create a government-owned petroleum reserve to serve as a national buffer during supply disruptions, severe oil price volatility, natural disasters, geopolitical conflicts and other emergencies.

The lawmaker explained that the PSPR “covers government owned petroleum stocks maintained exclusively for use during periods of supply disruption or severe oil price volatility.”

According to Yap, the reserve is necessary given the country’s dependence on imported crude oil and petroleum products.

Yap headed the Technical Working Group (TWG) which drafted the committee report that reviewed the measure’s legal, technical, operational, financial and policy implications, over the course of four meetings, with inputs from government agencies, the Philippine National Oil Company (PNOC) and downstream oil and LPG industry stakeholders.

“The primary objective was to craft a measure that effectively strengthens the country’s energy security while preserving the principles of a competitive and deregulated downstream oil industry,” emphasized Yap.

The substitute bill, when enacted, would amend Republic Act (RA) 9513 or the “Renewable Energy Act of 2008.”

APEC Party-list Rep. Sergio Dagooc also advanced other amendments to RA 9513 to encourage greater private sector participation in the exploration, development, and utilization of renewable energy; promote energy security and self-reliance; developing integrated renewable energy systems incorporating energy storage systems; and streamline permitting processes and interagency and local government approvals.

The panel also approved the creation of another TWG, to be chaired by Yap anew, to further discuss and harmonize other bills seeking to make solar power more accessible and affordable for households and small businesses by providing incentives, simplifying permit requirements, and promoting the use of solar panels and energy storage systems to allow consumers to generate and use their own electricity and reduce their power bills.

Department of Energy (DOE) Undersecretary Riolita Inocencio said the agency fully supports the proposed bills promoting consumer-owned solar power systems, noting that existing rules allow non-export self-generating facilities and plug-and-play systems, while proposed incentives could further encourage consumers to generate their own electricity and reduce their power bills.