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Republic of the Philippines
HOUSE OF REPRESENTA’
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House Bill No. 33 2

Introduced by Representative Michael L. Romero

AN ACT
ESTABLISHING THE STRATEGIC FUEL RESERVE SYSTEM OF THE
PHILIPPINES, TO STABILIZE SPIKES IN FUEL PRICES, DEFINING ITS
PURPOSES, PRIORITIES, FEATURES, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

A national fuel reserve will enable the government to protect Filipino
consumers from the shocks of price hikes of crude oil in the world market and
resulting rate increases of public utilities and fuel at the gasoline stations, as well as
supply disruptions results from natural disasters and calamities.

In this bill, the core of the Strategic Fuel Reserves System of the Philippines
shall be made up of all government-owned, operated, or controlled stockpiles and
facilities, including all fuel stations of all Departments in the Executive Branch, the
Armed Forces of the Philippines, the Philippine National Police, other armed and
uniformed services, the Philippine Ports Authority, other port authorities, and free
ports.

The total government component of the stockpile shall consist of at least thirty
(30) days stockpile of each of these basic fuel products: liquefied petroleum gas,
natural gas, diesel, gasoline, kerosene, aviation fuel, and bunker fuel. The private
sector component of the core shall consist of at least thirty (30) days stockpile of each
of these basic fuel products: liquefied petroleum gas, natural gas, diesel, gasoline,
kerosene, aviation fuel, and bunker fuel. The private sector component shall also have
at least thirty (30) days stockpile of unprocessed petroleum.

Augmentation reserves shall consist of stockpiles of petroleum and petroleum
products imported through government-to-government bilateral and multilateral



agreements from petroleum producing countries. These additional stockpiles shall be
stored in both government and private sector storage facilities. The System shall
prioritize the distribution and allocation its stockpile of reserves to assure continuity
of essential services, including, but not limited to the following:

a. Hospitals and social service care facilities for seniors, youth, persons with
disabilities, and women in distress;

. Water distribution;

Sewerage treatment and water filtration;

Power generation;

. Airports and seaports;

Schools and other education facilities; and

Newspapers, radio stations, television stations, and other strategic

communications facilities

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The Board shall determine the purposes and priorities of stockpile fuel
distribution directly to Filipino consumers and households by considering factors
such as population size, population density, and strategic location in provinces and
regions. The Board shall formulate, approve, and implement a Master Plan on Energy
Security.

The Master Plan on Energy Security and core components of the System shall
be operational within one year from the effectivity of this Act. The whole System shall
be fully operational within three (3) years from the effectivity of this Act.

BACKGROUND

‘The Energy Regulatory Commission has current policies on the maintenance
of fuel reserves by private oil companies operating in the Philippines.

The Malampaya Fund, established by virtue of Presidential Decree 910 on
March 22, 1976, was created “to finance energy resource development and
exploitation programs and projects of the government and for such other
purposes...directed by the President" and has been utilized to cushion the impact fuel
price hikes on the Filipino people.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

MICHAEL L. ROMERO Ph.D.
Representative
1-PACMAN Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS,
First Regular Session

House Bill No. 332

Introduced by Representative Michael L. Romero

AN ACT
ESTABLISHING THE STRATEGIC FUEL RESERVE SYSTEM OF THE
PHILIPPINES, TO STABILIZE SPIKES IN FUEL PRICES, DEFINING ITS
PURPOSES, PRIORITIES, FEATURES, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. SHORT TITLE. - This Act shall be known as “THE PHILIPPINE
STRATEGIC FUEL RESERVE and FUEL PRICE STABILIZATION ACT of 2022”

SECTION 2. ESTABLISHMENT OF THE STRATEGIC FUEL RESERVES
SYSTEM. - The Strategic Fuel Reserves System of the Philippines, hereinafter
referred to as the System or Fuel Reserves, is hereby established.

The core of the System shall be made up of all government-owned, operated, or
controlled stockpiles and facilities, including all fuel stations of all Departments in
the Executive Branch, the Armed Forces of the Philippines, the Philippine National
Police, other armed and uniformed services, the Philippine Ports Authority, other
port authorities, and Freeports. The total government component of the stockpile
shall consist of at least thirty (30) days stockpile of each of these basic fuel products:
liquefied petroleum gas, natural gas, diesel, gasoline, kerosene, aviation fuel, and
bunker fuel.

The private sector component of the core shall consist of at least thirty (30)
days stockpile of each of these basic fuel products: liquefied petroleum gas, natural
gas, diesel, gasoline, kerosene, aviation fuel, and bunker fuel. The private sector
component shall also have at least thirty (30) days stockpile of unprocessed
petroleum.


Augmentation reserves shall consist of stockpiles of petroleum and petroleum
products imported through government-to-government bilateral and multilateral
agreements from petroleum producing countries. These additional stockpiles shall be
stored in both government and private sector storage facilities.

SECTION 3. PURPOSES AND PRIORITIES. - The System shall protect Filipino
households, consumers, marginalized sectors, and islands from acute, chronic, and
major disruptions in the delivery of basic services and from impact of high inflation
resulting from oil supply disruptions and wild price fluctuations.

SECTION 4. MANAGEMENT OF THE SYSTEM. - The System shall have a Board
of Trustees as its multi-sectoral and collegial governing body with corporate and
quasi-judicial powers. For administrative and budgeting purposes, it shall be an
attached agency of the Department of Energy. The Board of Trustees shall consist of
the following:

Chairman : Secretary of Energy

First Vice Chairman: Secretary of Social Welfare and Development
Second Vice Chairman: Secretary of the Interior and Local Government
Corporate Secretary: Executive Director of the Energy Regulatory

Commission Members:
Executive Director of the Office of Civil Defense;
Representative, Department of Trade and Industry;
Representative, Department of Transportation;
Representative, Department of Finance;
Representative, Bureau of Customs;
Representative, Armed Forces of the Philippines;
Representative, Philippine National Police:
Representative, Philippine Ports Authority;
Representative, Civil Aviation Authority of the Philippines;
Representative, Department of Health;
Representative, Department of Agriculture:
Representative, Philippine Chamber of Commerce and Industry;
Representative, Presidential Management Staff; and
Representative, Philippine International Trading Corporation.

The Board shall meet regularly once a month and may convene special and
emergency meetings as frequently as may be deemed necessary by the Secretary
of Energy or whenever ordered to convene by the President of the Philippines.


SECTION 5. PURPOSES AND PRIORITIES OF THE SYSTEM. ~ The System shall
prioritize the distribution and allocation its stockpile of reserves to assure continuity
of essential services, including, but not limited to the following:

(a) Hospitals and social service care facilities for seniors, youth, persons with

disabilities, and women in distress;

(b) Water distribution;

(c) Sewerage treatment and water filtration;

(d) Power generation;

(e) Airports and seaports;

(f) Schools and other education facilities;

(g) Newspapers, radio stations, television stations, and other strategic

communications facilities

The Board shall determine the purposes and priorities of stockpile fuel
distribution directly to Filipino consumers and households by considering factors
such as population size, population density, and strategic location in provinces and
regions. The Board shall formulate, approve, and implement a Master Plan on Energy
Security.

SECTION 6. PHASED IMPLEMENTATION. - The Master Plan on Energy Security
and core components of the System shall be operational within one year from the
effectivity of this Act. The whole System shall be fully operational within three (3)
years from the effectivity of this Act.

SECTION 7. IMPLEMENTING GUIDELINES. - The Board shall approve and issue
the implementing rules and regulations of this Act not later than ninety (90) days
from the effectivity of this Act.

SECTION 8. APPROPRIATIONS. - Initial funding for this Act shall be sourced from
the Malampaya Fund. The Board, in consultation with the Department of Budget and
Management and the Department of Finance, shall determine the amounts of initial
Malampaya Fund sourcing and continuing funding through the annual general
appropriations and the Malampaya Fund.

SECTION 9. SEPARABILITY. - If any provision or part of this Act is declared invalid
or unconstitutional, the remaining parts or provisions not affected shall continue to
be in full force and effect.

SECTION 10. REPEALING CLAUSE. - All laws, executive orders, and
administrative order or parts thereof inconsistent with any provision of this Act are
hereby repealed or amended accordingly.


SECTION 11. EFFECTIVITY CLAUSE. - This Act shall take effect fifteen (15) days
after its publication in the online version of the Official Gazette or in two (2)
newspapers of general circulation or with established internet website presence.

Approved.