Indonesia, Thailand, Philippines to Create Joint Emergency Fuel Stockpiles

• •Indonesia, Thailand, and the Philippines are establishing a joint emergency fuel stockpile system.
• •The initiative is backed by Japan and responds to energy supply disruptions from the Iran war.
• •The Philippines, heavily reliant on Gulf oil imports, faced significant petrol price increases during the crisis.

Indonesia, Thailand, and the Philippines are set to sign agreements to establish a system for sharing oil and fuel stockpiles during emergencies. This initiative, backed by Japan, aims to enhance energy security in Southeast Asia, particularly following disruptions caused by the Iran war. The agreements will involve the construction of storage facilities in Indonesia and Thailand, allowing the Philippines to purchase fuel during crises. The Philippine oil company PNOC Exploration Corporation will sign a letter of intent with tank operators in Thailand and Indonesia. The stockpile system will utilize a 'ticket-based system' for managing reserves, similar to arrangements in the European Union. This is the first such initiative in ASEAN, responding to the Philippines' heavy reliance on oil imports from the Gulf, which was highlighted during the recent oil supply shock. The Philippines experienced the highest petrol price increase globally due to this crisis, prompting a national energy emergency declaration by President Ferdinand Marcos Jr.