DBM taps P20 billion from Malampaya fund for fuel purchases
MANILA, Philippines (Updated 4:37 p.m.) — The Department of Budget and Management (DBM) approved the release of P20 billion to fund fuel purchases of up to 2 million barrels, as the government moves to secure supply and cushion the impact of rising oil prices.
In a statement Wednesday, March 24, the DBM said the funds were released to the Department of Energy from the Malampaya Gas Fund under the Special Account in the General Fund.
"Under the president's directive, we are moving with urgency to ensure that fuel remains available, prices are moderated, and essential services continue uninterrupted. This is government acting ahead of the crisis—not reacting after the damage is done," Budget Secretary Rolando Toledo said.
Energy Secretary Sharon Garin said Tuesday that the the state-owned Philippine National Oil Company will lead the procurement of 400,000 barrels from Southeast Asian neighbors and 600,000 barrels elsewhere.
Fuel prices in the Philippines have climbed past past triple digits per liter for most products as global supply concerns intensify. President Ferdinand Marcos Jr. earlier declared a state of national energy emergency.
The DBM said the P20 billion will be used to procure fuel products such as diesel, gasoline and liquefied petroleum gas to boost national reserves and help stabilize pump prices.
Toledo said the release aims to support essential sectors affected by fuel costs.
"This is about protecting the daily life of every Filipino—from the jeepney driver and delivery rider, to our farmers, frontliners, and ordinary families. Kapag may problema sa fuel, apektado ang buong ekonomiya. Hindi puwedeng maghintay," Toledo said.
The Philippine National Oil Company–Exploration Corp. will lead the procurement to augment domestic supply.
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