The country’s petroleum inventory as of end June 2020 reflected a crude oil of 21.8 days supply equivalent to 974 million liters (ML). Finished products reflected a 39.3 days supply equivalent to 1,756 ML with average daily demand of 44.6 ML. Total crude oil and finished product available days supply is 61.2 days equivalent to 2,730 ML. The June 2020 inventory was slightly lower by 0.88 percent from June 2019’s 2,754 ML.
The government ensures that the Minimum Inventory Requirement (MIR) for refiners (to maintain a combination of 30 days supply of crude oil and finished product) and bulk oil suppliers and LPG importers without refining capacity (to maintain 15 days supply of finished products and 7 days supply of LPG, respectively) is complied with.
With regard to implementation of the 3rd tranche of RA 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law on petroleum products, the Department monitored the status of the oil companies’ 2019 end-year inventory (referred to as old stocks) on a per product/depot basis, until the same are exhausted. This is to ensure that the new excise tax was not applied until the old stocks of finished products were depleted.
Likewise, same monitoring is being done with regard to June 25 inventory with tariff. As provided under Section 1 of E.O. 113, a 10% tariff on crude oil and refined petroleum products is temporarily imposed effective May 6 to June 25, 2020. Hence, daily withdrawals of petroleum products on a per depot basis is being submitted by the oil companies until the June 25 inventory with tariff is fully depleted. This is to ensure proper implementation of the oil companies at their respective retail outlets.