Philippines boosts fuel reserves to protect travel industry stability

Jet fuel sufficient

This expanded buffer is particularly significant for tourism, a key pillar of the Philippine economy. Reliable fuel supply is essential to maintain airline operations, domestic flights between islands, cruise activity, and ground transport services. Any prolonged shortage could lead to higher airfares, reduced flight frequencies, and increased operating costs for tour operators and hospitality providers.

While demand remains robust, inventory levels have improved across all major fuel categories, including gasoline, diesel, jet fuel and liquefied petroleum gas (LPG)—all critical to keeping airports, resorts and transport networks running smoothly.

(Source: Philstar)

Looking for new sources of procurement

The supply build-up is being driven by a coordinated procurement strategy led by the Philippine National Oil Company (PNOC) and its exploration arm. Together, they have already secured more than one million barrels of diesel—roughly half of their 2 million-barrel target—with deliveries scheduled in phases through April.

Shipments are arriving from a diversified range of sources, including Japan, Malaysia, Singapore, India and Oman. This approach is designed to ensure continuous availability and reduce exposure to sudden disruptions in global supply chains, an important safeguard as peak travel demand approaches the summer season.

Beyond diesel, the country is also reinforcing reserves of jet fuel and LPG. For airlines and airports, stable jet fuel availability is crucial to avoid schedule disruptions and capacity cuts, particularly on high-demand domestic and regional routes.

Petron Corp. also secured 2.48 million barrels of crude oil from Russia, despite an embargo- helping support refining operations through June and stabilize downstream supply.

The Philippines remains heavily dependent on imports, with around 98% of its fuel sourced from overseas—primarily the Middle East—making it vulnerable to geopolitical tensions in key transit routes such as the Strait of Hormuz.

To mitigate these risks, the government is exploring new supply partnerships with countries including Argentina, Australia, Canada and Colombia, aiming to diversify sourcing and strengthen long-term energy resilience.

Authorities continue meanwhile to urge fuel conservation. For the travel industry, maintaining stable fuel supply will be essential to preserving connectivity, controlling costs, and sustaining tourism activity in the months ahead.

(Source : Philstar)