Petron Corporation has procured approximately 2.48 million barrels of crude oil from Russia as part of efforts to secure the country’s fuel supply amidst ongoing global disruptions and the recently declared national energy emergency.

The company said the move was made in response to supply risks arising from geopolitical tensions in the Middle East, particularly disruptions in key shipping routes such as the Strait of Hormuz, which have affected the delivery of crude oil shipments.

Petron emphasized that the procurement of Russian crude is not part of its regular sourcing strategy and was undertaken only as an extraordinary measure after exhausting all other commercially and operationally viable alternatives.

The imported crude, together with existing supply, is expected to aid the company’s petroleum inventory until June 2026, thus helping ensure continued fuel availability in the country.

The company noted that the Philippines still remains heavily dependent on imported fuel, with around 98% of crude oil imports sourced from the Middle East. This makes the country particularly vulnerable to disruptions in the region.

Petron, which operates the country’s only oil refinery and accounts for about 30% of the domestic fuel market, said securing alternative crude sources was necessary to prevent potential fuel shortages, price spikes, and broader economic disruption.

Without sufficient crude supply, the company warned that a refinery shutdown could lead to nationwide fuel shortages, sharper increases in pump prices, panic buying, and disruptions to transportation, logistics, and essential services.

The procurement was carried out in coordination with government agencies, including the Department of Energy and the Department of Finance, which have encouraged oil companies to secure alternative crude and finished product sources.

The Bangko Sentral ng Pilipinas also issued confirmation that there are no legal prohibitions on sourcing foreign currency for import and trade transactions, providing additional regulatory clarity for the purchase.

Petron said it may consider further purchases of Russian crude if the current crisis persists and alternative sources remain unavailable. The company emphasizes that all actions are guided by the objective of ensuring national energy security.

The company added that it will continue to act in compliance with applicable laws and regulations while maintaining transparency in its operations.

How should the Philippines balance immediate energy security needs with long-term supply risks?

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