The Philippine National Oil Company-Exploration Corporation completed delivery of its third and fourth government-procured emergency diesel shipments this week, receiving a combined 650,000 barrels from Singapore at Subic Bay and Davao — the latest concrete output of the state’s Emergency Energy Security Program activated under Executive Order No. 110.
Key Facts At A Glance
- Third shipment: 320,000 barrels (50.88 million liters) received at Subic Bay Terminal, April 21, 2026
- Fourth shipment: 330,000 barrels (52.47 million liters) received at Davao, April 24, 2026
- Both shipments sourced from Singapore and procured by the Philippine National Oil Company-Exploration Corporation (PNOC-EC)
- Combined third and fourth delivery volume: approximately 103.35 million liters
- Total program-to-date procurement: 1.042 million barrels (approximately 165.7 million liters) of diesel secured through April
- Average national diesel demand: approximately 205,000 barrels per day; the two combined shipments represent roughly three days of additional supply
- PNOC-EC program target: up to 2 million barrels of oil and 22,000 metric tons of LPG for national buffer stock
- Diesel supply as of April 17, 2026: 50.13 days; LPG at 40.26 days; gasoline at 54.47 days
- Philippine Coastal Storage and Pipeline Corporation (PCSPC) Subic facility storage capacity: approximately 6.3 million barrels, representing roughly 20 percent of national fuel storage
Program Origin And Legal Authority
President Ferdinand R. Marcos Jr. declared a state of national energy emergency on March 24, 2026, through Executive Order No. 110, citing the sustained disruption to global oil supply caused by the ongoing conflict in the Middle East and the effective closure of the Strait of Hormuz. The Philippines imports approximately 98 percent of its oil, making it acutely exposed to Hormuz-linked supply shocks.
EO 110 authorized the Department of Energy, PNOC, and PNOC-EC to undertake direct procurement of required fuel and petroleum products, including authority to make advance payments exceeding the standard 15-percent contract threshold when certified by the Energy Secretary. A supplementary legislative measure, Republic Act 12316 signed on March 25, 2026, further authorized the President to suspend or reduce petroleum excise taxes for up to three months through December 31, 2028. On the same date, the Department of Budget and Management released ₱20 billion (approximately US$406 million) from the Malampaya gas fund to the DOE to finance emergency fuel procurement.
Phased Delivery Sequence
The Emergency Energy Security Program has operated on a phased, multi-source procurement structure since late March. The first shipment — 142,000 barrels, or 22.578 million liters, from Japan — arrived on March 26, 2026. The second shipment — approximately 329,000 barrels (52.311 million liters) sourced from Malaysia — arrived at Subic on April 10, 2026, and was confirmed by Energy Secretary Sharon Garin the following day. The third and fourth shipments, both from Singapore, completed delivery at Subic and Davao on April 21 and April 24, respectively, according to the DOE press release issued April 20.
DOE Undersecretary Alessandro Sales disclosed on April 20 that PNOC-EC plans to procure as much as 2 million barrels of oil as a national buffer stock. At the time of the announcement, the Bureau of Internal Revenue had already issued a special permit to PNOC-EC as of March 30, designed to bypass standard customs and bureaucratic procedures to accelerate emergency importations.
Subic As A Frontline Logistics Hub
The Philippine Coastal Storage and Pipeline Corporation (PCSPC) facility at Subic Bay Freeport has emerged as the central logistics asset in the emergency response. With a storage capacity of approximately 6.3 million barrels — equivalent to roughly 20 percent of national buffer stock capacity — the PCSPC facility, built on infrastructure from the former U.S. Naval Base Subic Bay, now serves as a primary distribution hub for diesel, gasoline, and jet fuel destined for Metro Manila, Central Luzon, and Northern Luzon. Subic Bay Metropolitan Authority Senior Deputy Administrator for Port Operations Ronnie Yambao confirmed the April 10 arrival of 44,119 metric tons (329,505 barrels) at the facility.
LPG Procurement Underway
In parallel with diesel deliveries, the DOE announced that PNOC has separately secured 21,000 metric tons of liquefied petroleum gas from the United States, to be shipped via Singapore with delivery at Batangas scheduled between May 20 and May 31, 2026. As of April 17, the country’s LPG inventory stood at 40.26 days — the tightest supply buffer among tracked fuel categories, underscoring the government’s rationale for diversifying emergency procurement beyond diesel.
Supply Adequacy And Remaining Exposure
Despite the phased deliveries, officials have acknowledged that the cushion provided by each shipment is measured in days rather than weeks. With average daily diesel demand at approximately 205,000 barrels, the combined third and fourth shipments add approximately three days of supply. The DOE and PNOC-EC’s overarching target of 2 million barrels would represent approximately nine to ten additional days of diesel supply at current consumption rates if fully delivered. Officials have not announced further shipments beyond the fourth delivery as of the date of this report.