Japan backs Philippine’s strategic oil reserve plan

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May 30, 2026 | 12:00am

MANILA, Philippines — Japan is throwing its support behind the Philippines’ push to build a strategic petroleum reserve program designed to strengthen resilience against global supply shocks driven by geopolitical tensions.

The Department of Energy (DOE) and Japan’s Ministry of Economy, Trade and Industry (METI) announced a cooperation agreement aimed at boosting energy security in the Philippines and across Southeast Asia.

Building on high-level dialogue between President Marcos and Japanese Prime Minister Takaichi Sanae in Tokyo, Japan has committed to supporting the development of a national stockpiling system in the Philippines.

As part of this initiative, Tokyo will carry out feasibility studies and provide technical assistance for the development of new strategic storage facilities in Manila.

The effort will be implemented in partnership with the Economic Research Institute for ASEAN and East Asia, the Japan Organization for Metals and Energy Security and the Japan Bank for International Cooperation, alongside other Japanese trading and engineering firms.

The cooperation also includes the potential involvement of Japanese government institutions and private firms in engineering, procurement, construction and financing arrangements for relevant projects.

Japan has also expressed support for the Philippines’ broader vision of establishing an ASEAN-wide joint stockpiling mechanism.

“Japan intends to engage with oil-producing countries, including those in the Middle East, in promoting these efforts, while supporting ASEAN’s own institutions in strengthening regional energy security and resilience,” the DOE and METI said in a joint statement.

ASEAN markets remain under pressure amid ongoing supply constraints in the Middle East driven by tensions involving the United States, Israel and Iran.

The geopolitical tensions continue to disrupt maritime traffic through the Strait of Hormuz, a narrow waterway that typically carries around 20 percent of global oil and gas supplies.

For the Philippines, where around 98 percent of crude oil imports come from the Middle East, these risks have intensified efforts to secure alternative sources to avert potential supply shortages.

As of May 22, the country’s average fuel inventory stood at 44.82 days, according to DOE data.

Broken down, gasoline stocks were sufficient for 45.87 days, diesel for 41.07 days, kerosene for 138.93 days, jet fuel for 66.41 days, fuel oil for 47.17 days and liquefied petroleum gas for 41.49 days.