Philippine oil refiner Petron buys Russian crude, eyes alternatives

Protesters use a passenger jeepney as a stage during a rally by transport workers and activists protesting the rise in oil prices on Friday, near the Malacanang presidential palace in Manila, Philippines.

Photo: AP Petron Corp., the Philippines’ only refiner, has procured 2.48 million barrels of crude oil from Russia as the Southeast Asian nation scours the world for alternative suppliers to support domestic energy needs with the war in Iran raging. “If the current crisis persists and alternative crude sources remain unavailable or insufficient, Petron may again be compelled to consider purchases of Russian crude oil to augment the national fuel supply,” parent San Miguel Corp. said in a statement to market regulators late on Friday.

The crude will augment Petron’s inventory of petroleum products until June, San Miguel said, adding that the purchases were made “strictly out of extreme necessity.” On February 28, the same day that the US and Israel launched a military campaign against Iran, Petron was advised that one shipment of 2 million barrels of crude did not gain safe passage at the Strait of Hormuz as Iran announced its closure.

A second shipment of 2 million barrels of crude was also cancelled on March 7 due to the heightened risk in the Red Sea and Strait of Hormuz, San Miguel said.

The Philippines, which sources nearly all of its oil requirements from the Middle East, is trying to find alternative sources to ease the supply crunch that has triggered an energy emergency declaration by the government.

It’s also negotiating for fuel supply from Japan, China, South Korea and India.

Manila has said it had 45 days worth of oil supplies as of March 20.

The country this week is set to receive the first batch of diesel from its order of over 1 million barrels, Executive Secretary Ralph Recto said on Sunday, citing “oil diplomacy” efforts by officials led by Energy Secretary Sharon Garin. “From Indonesia also comes the ironclad guarantee of a steady supply of coal,” Recto added.

Indonesia is the Philippines’ main supplier of coal which fuels more than half of its power grid.

Budget carrier Cebu Air Inc. said it has enough jet fuel supply to last until June.

In a post on X on Sunday, the airline said it’s “working closely with suppliers and industry partners to ensure continued fuel availability in the months ahead” to sustain operations.

Its comments followed a similar assurance by rival Philippine Airlines Inc. days earlier, whose chief said peo

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