ABOUT 240 million liters of cheaper diesel would come from Russia soon, according to a senior official of the Department of Energy (DOE).

Energy Undersecretary Felix William B. Fuentebella said the government is currently negotiating with its newfound ally and seeks to buy the diesel “as soon as possible” to beef up the country’s stockpile and help slow inflation.

However, the amount is just equivalent to a three-day supply and the importation would fail to make a dent on the upward pace of local oil prices. Still, Fuentebella said the move reflects what could be considered the new normal in the government’s energy policy.

According to him, the President’s marching order is to head toward that direction with the DOE directing state-owned Philippine National Oil Co.-Exploration Corp. (PNOC-EC) to prepare for oil trading and compete with local oil industry players to ease the impact of rising oil prices.

This development came following strong calls for the suspension of the Tax Reform for Acceleration and Inclusion, the law being blamed for rising inflation.

“What we are pushing is enhancing competition to add more players,” Fuentebella said in an ambush interview. He added the move to import oil via a government-to-government scheme is an “out of the box” practice for the DOE. “Through enhancing competition, there will be an impact on prices.”

If the government is going to continue using this route and which results to lesser prices, then the private sector will copy it, according to Fuentebella, believing there would be a “rippling effect” on the prices of oil and petroleum products.

“We pass [on] the risk to the private sector,” he said. “The government has commitment on deregulation but, nonetheless, [the] GOCC [government-owned and -controlled corporation] factor is there to enhance competition some more.” Fuentebella is referring to PNOC-EC, a GOCC, which would bankroll the importation costs, “not taxpayers’ money.” He added he cannot say how much is involved as he hasn’t seen the terms of negotiation. He said it would be the members of the PNOC-EC board who will approve the budget.

However, the government expects the diesel from Russia would arrive earlier than the six-month window, Fuentebella said.

He added the importance of stockpiling is to have that third level of security for emergency purposes. The PNOC has already secured some of the storage facilities in Subic for the stockpiling, Fuentebella said. Aside from Russia, he added, the government is also looking into importing diesel from Thailand and Saudi.

On Tuesday Malacañang said Petron Corp. and Phoenix Petroleum Philippines Inc., headed by Ramon S. Ang and Dennis A. Uy, respectively, have voluntarily offered to sell cheaper Russian diesel, amid the rising oil prices in the world market.

“There is already a voluntary offer from at least two companies that, if we succeed in the importation of cheap Russian diesel, they will sell it to the public even though we do not own Petron anymore,” Presidential Spokesman Harry L. Roque Jr. has said.

Earlier, the government said it is eyeing oil from countries outside the Organization of Petroleum Exporting Countries to cushion the impact of rising oil prices.