THE government is moving to buy up to 2 million barrels of oil to strengthen the country’s buffer stock, as global uncertainties and elevated fuel prices prompt a more proactive economic response, Finance Secretary Frederick Go said Tuesday. “PNOC-EC (Philippine National Oil Company Exploration Corp.) has the resources to be able to acquire 2 million barrels of oil as a precautionary measure to add to our oil buffer stock,” Go told reporters. “I believe that they have a lot of offers on the table so they’re just selecting which ones they will procure from,” he added. The procurement is expected to begin anytime this week, Go said, and will be implemented in batches through global sourcing. He said the staggered buying strategy allows the government to tap multiple suppliers while managing price risks, adding that the buffer system will function as a rolling stockpile, with inventories replenished after being offloaded to oil companies. “The primary objective, of course, is to create that additional buffer stock,” Go said. “And also when you put out a big order into the global market, the beneficiary should be able to get some economies of scale and procure at lower prices.” On Tuesday, crude oil prices surged over 3 percent, with Brent crude surpassing $102-$103 per barrel as several countries pushed back against US President Donald Trump’s demand that they help secure the key Strait of Hormuz, while Iran continued to target crude-producing neighbors. No fuel tax cut yet Despite the sharp rise in gasoline prices, Go said it was “too early” for the Development Budget Coordination Committee (DBCC) to recommend reducing excise taxes on fuel to the president. Any reduction would require a three-step process, he said: legislative authorization, certification of a national urgent situation by the Department of Energy, and a recommendation from the DBCC to the president. Estimates showed that under a scenario where Dubai crude futures reach around $100 per barrel in March, diesel prices could climb to 74.22 percent in March and 67.33 percent in April. If the government suspends the excise tax from March to May 2026, the increase would ease slightly to 67.50 percent and 60.61 percent, respectively. However, the policy would significantly cut government revenues. A three-month suspension could result in total revenue losses of about P43.3 billion, including foregone excise taxes and related value-added tax (VAT) collections. If extended to seven months, the revenue loss could widen to about P105.9 billion, reflecting nearly P97.7 billion in lost excise tax collections and P12 billion in foregone VAT, partially offset by higher VAT from rising prices. For now, Go said it is too early to trigger such measures, noting that policymakers are still assessing the duration and impact of elevated oil prices driven by global developments. “My understanding is that Congress has already passed the bill and the Senate already has a draft bill,” Go said. “The Senate draft bill is completely aligned with the position of the Department of Finance. So we would be very supportive of the draft bill when the Senate is coming forward,” he added. Go also said they are stepping up efforts to generate additional revenues by accelerating the disposal of government assets, adding that potential assets have already been identified in coordination with the Privatization Management Office, with progress expected by the second quarter. Cash assistance to drivers Meanwhile, President Ferdinand Marcos Jr. led the distribution of P5,000 cash assistance to drivers of public utility vehicles (PUVs) affected by the spike in oil prices due to the war in the Middle East, beginning with tricycle drivers in Metro Manila. Speaking to reporters after the distribution of cash relief assistance in Sta. Mesa, Manila, Marcos said more beneficiaries would receive aid in the coming days. “This is just the beginning of the distribution. This is something that we have to do because of the sudden increase in oil prices,” Marcos said. “We will start, we will do 30,000 of the tricycle drivers. The jeepney drivers and TNVS (transport network vehicle service) will come next,” he added. The president said that distribution of cash aid to jeepney drivers would start this week or early next week. The P5,000-fuel assistance distribution to public transport drivers will cover ride-hailing motorcycles and cars, taxis, jeepneys and buses. Marcos assured the public that the government would ensure that Filipinos continue to earn a living amid the oil price shocks. “We are here, the government is here, and we are closely monitoring the new developments and what may happen next to ensure that our fellow citizens can continue to earn a living and that our commuters can continue going to work,” he said. Marcos also expressed optimism that the ongoing crisis in the Gulf region would not significantly affect the Philippines. “We hope that this war in the Middle East will not cause too much difficulty. Rest assured that we are watching closely and are ready to support all of our fellow citizens,” he said. A total of 139,000 tricycle drivers in Metro Manila will receive P5,000, at a cost of P695 million under the Department of Social Welfare and Development’s (DSWD) Assistance to Individuals in Crisis Situation Program. The DSWD coordinated with the Department of Transportation and local government units (LGUs) to identify the beneficiaries. The cash aid will be released at designated payouts in Metro Manila to expedite the process and allow drivers to return to work after receiving the subsidy. In addition to cash assistance, the government is rolling out additional support measures to help the public cope with rising fuel prices. The government is also talking to oil companies to implement staggered fuel price increases, as well as other ways to help ease the burden of the public. Meanwhile, Executive Secretary Ralph Recto said the government would expand the distribution of P5,000 in fuel assistance to PUV drivers nationwide by April. In a statement, Recto said the expanded program would benefit a total of 396,352 PUV drivers in Metro Manila, including TNVS drivers, motorcycle taxi drivers, bus drivers and jeepney drivers. The total cost would come to P1.98 billion. “Two wheels, three wheels, four wheels, six wheels. As long as you are driving, we will try to include you in the program,” Recto said. “It is the president’s priority to immediately assist our drivers affected by the Middle East conflict. That is why this transport aid was launched right away,” he added. Recto said the nationwide rollout would begin once the Department of Social Welfare and Development, Department of Transportation, and the Land Transportation Franchising and Regulatory Board finalize the list of beneficiaries. He also said that the government would launch a Libreng Sakay Program so that commuters, especially students and workers, could save money amid the rise in the prices of basic goods. “We are doing an inventory of what we can deploy, and who can participate,” Recto said. “There will be various modalities. We can deploy government-owned vehicles, for example. Or even contract buses and designate these as fare-free rides,” he said. “We can ask also LGUs (local government units) who run free bus services to extend the operating hours.” No national emergency Despite the sharp rise in fuel prices, the Palace said there was no need for the president to declare a national emergency to take over the operations of the oil industry. In a press briefing in Mandaue City, Cebu, Palace Press Officer Claire Castro assured the public that the situation remains manageable, stressing that the government continues to exercise control over developments affecting the oil sector. Castro made the assurance amid calls for stronger intervention to address rising fuel prices. “At present, we are not yet in that kind of situation,” she said, when asked to react to calls for Marcos to invoke emergency powers under Republic Act (RA) 8479 or the Oil Deregulation Law governing the oil industry. “The president and the government are still in control of the situation.” Castro noted that the Department of Energy (DOE) is maintaining close coordination with oil companies to monitor supply and pricing movements. She said the engagement with oil firms helps ensure stability in the market despite external pressures affecting global oil prices. Castro issued the statement following calls from Trade Union Congress of the Philippines (TUCP) Representative and House Deputy Speaker Raymond Democrito Mendoza for Marcos to consider declaring a state of national emergency to allow temporary government takeover of oil companies’ operations. Mendoza said that under Section 14(e) of RA 8479, the DOE may temporarily take over or direct the operations of entities in the oil industry during emergencies. Castro, however, said current conditions do not warrant such measures, given existing mechanisms in place to manage the situation. She also appealed to the public to remain calm and avoid spreading fear.