The Philippines’ only oil refinery, Petron Corporation, has secured nearly 2.5 million barrels of Russian crude oil as an emergency measure to address declining fuel reserves amid global supply disruptions.
According to a disclosure filed with the stock exchange on Monday, refinery operator Petron Corporation made the purchase citing “extreme necessity” as ongoing geopolitical tensions continue to disrupt energy markets.
The move comes as the country faces a sharp rise in fuel prices following the US-Israel conflict with Iran, which has partially affected operations in the strategically important Strait of Hormuz.
President Ferdinand Marcos Jr recently warned that existing fuel stocks could last only until 30 June if the situation persists.
According to Petron, it was forced to seek alternative sources after at least four million barrels of expected shipments were cancelled since the escalation of the Middle East crisis.
The company noted that failure to secure crude supplies could have led to a shutdown of its refinery, potentially triggering severe fuel shortages and further price hikes nationwide.
The refinery, which meets around 30 per cent of the country’s fuel demand, plays a critical role in maintaining energy stability. Since the crisis began, prices of diesel and gasoline have surged, prompting protests from transport workers, including jeepney drivers.
The purchase of Russian oil became possible after the United States temporarily eased certain sanctions, allowing countries to import shipments already in transit until 11 April.
Meanwhile, the government is also sourcing fuel from other partners. The Department of Energy recently confirmed the arrival of 1,42,000 barrels of diesel from Japan as part of efforts to secure up to two million barrels of additional supply.
Officials say further steps may be taken if global supply conditions do not improve in the coming weeks.
