With the Russia-Ukraine conflict in its second month, Petron – the Philippines’ largest oil firm – said that its oil supply remains stable, at least for the time being.
“Petron currently does not foresee issues on its oil supply on a short or medium-term basis as Petron does not have term crude supply contracts with Russia,” the oil giant said in its annual report, as disclosed to the Philippine Stock Exchange last week.
It added, however, that prices of oil products may rise alongside thin supply should the war between the two Soviet countries continue.
“[Based] on recent events and market sentiments, oil prices are expected to be high during the crisis and in the event of a protracted conflict, oil supply could become tight,” the company said.
Petron sources its crude supply requirements from the Middle East, adding that it holds around two months’ worth of crude oil and finished petroleum products in its inventory. Nonetheless, the oil giant said that “[geopolitical] factors such as the current Russia-Ukraine conflict can affect its financial performance.”
“The extent to which the ongoing conflict will affect the Company will depend on future developments, including the actions and decisions taken or not taken by the [Organization of the Petroleum Exporting Countries] and other oil producing countries, international community, and the Philippine government which are highly uncertain and cannot be quantified nor determined at this point,” it added.
On Tuesday morning, Petron and other oil firms raised diesel prices by Php1.70 per liter, and gasoline and kerosene by Php0.45/liter.