Investments in the downstream oil industry reached P49 billion in 2015, up from P38 billion in 2010 as the number of industry players increased to 249 from 181 over the past five years, according to the Energy Department.
Latest Energy Department report showed that with the increased investments and number of players, the total industry storage capacity also expanded, with depots now totaling 163, up from 144 in 2010.
Refining capacity also improved to 285 million barrels per day from 278 million barrels a day in 2010.
The number of retail outlets of petroleum products also jumped to 6,264 in 2015 from 4,114 in 2010, data showed.
Sales of refined petroleum products increased last year to 124.5 million barrels from 111.8 million barrels in 2010.
The department, however, said there was a continuing threat of supply security as 99.9 percent of the total oil requirement of the Philippines was imported last year.
The department said aside from weather factors, political factors from supply sources could affect security of supply.
The agency cited the need to encourage industry players to increase investments to ensure supply security, improve market competition and make prices reasonable.
The department said it would continue to seek investments in the industry, especially from foreign investors who could put new oil refineries.
The country has two oil refiners including Petron Corp. and Pilipinas Shell Petroleum Corp. with facilities in Bataan and Batangas, respectively.
“The said investment would provide a more stable and bigger supply base for the country,” it said.
The department said studies on a domestic, strategic oil stockpile was ongoing.
“This is on top of the commercial stockpile that the existing oil players are required to maintain. Aspects to be considered include the type and quantity of oil, storage facilities, cost of putting up and operating the stockpile, timing of oil acquisition, conditions that would warrant a stockpile drawdown and the entity who would manage the facility,” the report said.
