Direct government-to-government (G2G) oil procurement, along with a broader diversification of supply sources, could help cushion the impact of ongoing global fuel price volatility, according to Senator Imee Marcos.
Marcos said the government may consider directly purchasing oil from producing countries and offering it at regulated or controlled prices to help reduce the burden on consumers. She said such a mechanism could provide relief for sectors that are heavily affected by fuel costs, including public transport operators, farmers, and fisherfolk.
She pointed to historical examples of state-led intervention during periods of global oil instability, noting that direct government negotiations had previously been used as a tool to stabilize supply and manage price spikes. According to her, similar approaches were implemented during earlier oil crises when governments actively secured imports through bilateral arrangements.
“In the 1970s, the government didn’t just wait for the market to stabilize. We negotiated direct G2G oil imports at deeply discounted ‘friendly’ rates to address the shocks of 1974 and 1979. This strategy worked then; why aren’t we doing it now?” Marcos said.
She also noted that several oil-importing countries have already adopted similar approaches or are expanding direct procurement strategies to secure stable supply. These countries include Indonesia, Sri Lanka, Vietnam, Thailand, and Malaysia, which have pursued various forms of bilateral or long-term supply arrangements.
Marcos stressed that the Philippines should strengthen its sourcing strategy by reducing overreliance on traditional trade routes and intermediaries. She highlighted the importance of minimizing exposure to potential disruptions in key global shipping corridors and ensuring that supply chains remain resilient.
She further suggested expanding direct partnerships with regional oil producers such as Malaysia, Brunei, and Indonesia. According to her, building closer ties with nearby suppliers could help reduce logistical risks and improve supply security. She also raised the need to reassess dependence on intermediary trading and refining hubs, which include major centers in Singapore, South Korea, and China.
Marcos warned that ongoing instability in the global oil market could continue to place pressure on domestic fuel prices, with broader economic implications if left unaddressed. She emphasized the need for long-term and proactive policy measures to safeguard consumers from sustained price fluctuations and supply uncertainties.
Authorities have not yet issued an official response to the proposal.
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