Petron Corporation announced that it has managed to purchase 2.48 million barrels of crude oil from Russia, allowing the company to have a fuel supply that will last until June 2026. Petron decided to procure fuel from Russia since cargoes carrying four million barrels of crude oil from the Middle East were unable to pass the Strait of Hormuz, which was shut down by Iran.
As such, Petron, which is the sole fuel refiner in the Philippines, engaged in talks with Russia to be able to augment its fuel supply, as well as prevent fuel shortages, and alleviate, as best as it can, the upward trend in fuel prices. The Philippines, as we all probably know by now, is highly dependent on imported fuel.
“A refinery shutdown for failure to secure crude would lead to serious nationwide fuel shortages, sharp price spikes, panic buying, disruption to transportation and logistics, and broader economic dislocation—outcomes that would have had serious consequences for households, businesses, and critical public services in a country that is highly dependent on imported fuel,” Petron said in a statement via InsiderPH.
Petron said that purchasing crude oil from Russia is not its usual route, and it was only considered a viable option due to the ongoing conflict in the Middle East. The fuel company puts it as a move “strictly out of extreme necessity.”
“The purchases were undertaken strictly out of extreme necessity as an extraordinary emergency measure in response to unprecedented geopolitical and supply-chain disruptions and only after exhausting all commercially and operationally viable alternatives,” Petron shared.
Petron did clarify that its purchase of Russian crude oil was coordinated with the Philippine government, especially the Department of Finance and the Department of Energy. Petron also said that the purchase of Russian crude oil is legal, as per Bangko Sentral ng Pilipinas.
With the uncertainty brought upon by the conflict between the United States and Iran, Petron has openly announced that it may purchase crude oil once again from Russia should the situation call for it.
“The corporation wishes to transparently disclose that, if the current crisis persists and alternative crude sources remain unavailable or insufficient, the corporation may again be compelled to consider purchases of Russian crude oil to augment the national fuel supply and directly mitigate the inimical consequences resulting from the absence of a stable and reliable source of crude,” Petron said.
Autocar’s Take
Petron Corporation is looking for alternative sources of securing crude oil due to the uncertainty in the Middle East conflict. As such, Petron sat down with Russia to purchase crude oil, which allows it to have a fuel supply until June 2026. Petron also made clear that its decision to purchase crude oil from Russia is “strictly out of extreme necessity as an extraordinary emergency measure.”
The fuel company decided to make a deal with Russia, not just to have enough fuel supply, but also to ensure that the country will have enough oil to power essential infrastructure. Meanwhile, the Department of Energy announced that 1.042 million barrels of diesel have been secured for delivery through April, which will be sourced from Malaysia, Singapore, India, and Oman. In fact, the DOE noted that the first shipment from Japan, consisting of 142,000 barrels or 22,578,000 liters, has already been delivered in the country.
