Philippines President Ferdinand Marcos Jr. has urged ASEAN to immediately activate its fuel-sharing pact as the Iran conflict and Middle East shipping disruptions expose the acute vulnerability of Asian economies. He has called for an emergency simulation of the ASEAN Petroleum Security Agreement (APSA), offering the Philippines as a host to test the region’s collective resilience against ongoing oil shocks.
Why Marcos is pushing APSA
Marcos informed the Asia Zero Emission Community Plus summit that route closures have heightened risks for import-dependent nations. APSA contains a voluntary mechanism for member states to supply fuel to a neighbor in distress, yet the framework has never been fully operationalized during a live crisis. Marcos argues that the agreement must be transitioned from a dormant document to an active defense while the current global supply disruption is unfolding.
Stockpiles and emergency reserves
Domestically, Marcos is accelerating the creation of a government-controlled strategic petroleum reserve to buffer against market failure. He has mandated that fuel companies expand stocks from 15 to 30 days for petroleum and nearly triple LPG reserves. Additionally, he is advocating for a “risk-calibrated” procurement strategy and a regional study on joint oil stockpiling to provide smaller ASEAN economies with a shared security net when primary supply lines are compromised.