Manila is negotiating oil storage arrangements with Saudi Arabia, Russia, the United States, Japan, Kuwait, the UAE and Australia to hedge against fuel-price spikes from a potential Iran conflict. The government plans to boost diesel- and gas-fired generation to offset El Nifio-driven declines in hydro and solar output; hydro generation is expected to fall about 60% in 1H 2027 and solar about 20%. Manila will build its first state-owned storage tank in Bataan next year for a strategic petroleum

Manila is negotiating oil storage arrangements with Saudi Arabia, Russia, the United States, Japan, Kuwait, the UAE and Australia to hedge against fuel-price spikes from a potential Iran conflict. The government plans to boost diesel- and gas-fired generation to offset El Nifio-driven declines in hydro and solar output; hydro generation is expected to fall about 60% in 1H 2027 and solar about 20%. Manila will build its first state-owned storage tank in Bataan next year for a strategic petroleum reserve. Current fuel stocks cover roughly 55 days versus a 15-day minimum requirement; about 1 mln bbl are held in private facilities. The SPR will start at 1 mln bbl and expand annually toward a 60-day target, split roughly 50:50 between crude and refined products.