As supply disruptions cut off key oil routes, efforts to keep fuel available locally have intensified. Petron Corporation secured 2.48 million barrels of crude oil from Russia to sustain operations and supply until June.
The move follows missed deliveries from the Middle East as conflict affected major shipping lanes. It reflects how local refiners are adjusting sourcing to keep supply flowing.
Petron, which holds about 30% of the domestic market and operates the country’s only refinery, said the volume will support continued refinery operations. The company noted that this supply, combined with existing inventory, is enough to maintain output in the coming months. This helps ensure fuel remains available for transport, industry, and households.
The procurement came after the company lost access to around 4 million barrels of expected Middle East crude within days. One shipment could not pass through the Strait of Hormuz, while another was canceled due to escalating risks.
With roughly 98% of Philippine crude imports coming from the region, the disruption directly affected supply planning.
“The procurement of Russian crude oil is not part of the Corporation’s business-as-usual sourcing strategy,” Petron Corp., in its regulatory disclosure, explained the decision as an emergency response after exhausting available alternatives.
Petron said it coordinated closely with the Department of Energy Philippines and the Department of Finance on the purchase. It also cited guidance from the Bangko Sentral ng Pilipinas, which confirmed there is no prohibition on sourcing foreign currency for such imports. The company added that it may consider further purchases if supply conditions remain constrained.
