Philippine gov’t eyes ₱20B Malampaya fund to boost oil buffer amid crisis

Budget Secretary Rolando Toledo said Tuesday that the Marcos administration is considering tapping ₱20 billion from the Malampaya natural gas fund to cushion the effects of rising Middle East tensions on the Philippines.

Speaking at the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) hearing, Toledo said the Executive branch had initially identified ₱210 billion in potential funding sources for the government’s response.

He explained that ₱10 billion would come from continuing appropriations under the 2025 national budget, while ₱200 billion is sourced from the 2026 General Appropriations Act (GAA).

“Last Saturday, we spoke with Secretary [Sharon] Garin… We are looking at tapping the Malampaya fund of P20 billion. The request is already with us. We will release that for the back purchases of oil,” Toledo said.

“I think it’s not a problem now na magkakaroon tayo ng shortfall because Secretary Garin already requested to us how do release now the P20 billion fund, charging it from the Malampaya,” he added.

With the proposed ₱20 billion drawdown from Malampaya, Toledo said the total available funding for the government’s response could reach ₱230 billion.

From the total amount ₱63.8 billion is earmarked for the Department of Social Welfare and Development’s (DSWD) protective services for individuals and families in difficult circumstances; ₱4.2 billion for the Department of Migrant Workers (DMW); ₱2 billion for the Department of Trade and Industry’s (DTI) programs for MSMEs and negosyo centers; and ₱1.2 billion for the Department of Foreign Affairs’ (DFA) assistance to nationals and legal assistance funds.

He added that part of the funds will also be used to provide fuel subsidies to farmers and the transport sector.

The Malampaya fund, established under Presidential Decree No. 910 signed by then-president Ferdinand Marcos in 1976, is intended to support government programs and projects related to energy resource development and utilization.

Earlier that day, Energy Secretary Sharon Garin said the government is allocating ₱20 billion to strengthen the country’s diesel buffer stock amid supply uncertainties linked to the Middle East crisis.

Garin said the Philippine National Oil Company (PNOC) aims to secure up to two million barrels of diesel, which is expected to cost around ₱20 billion. 

The additional buffer, she noted, could extend the country’s fuel supply by about 10 days.

-Paraluman News