Petron Buys 2.48 Million Barrels of Russian Crude Oil Under Emergency
Amid supply disruptions caused by the Middle East conflict, Philippine refinery Petron acquired 2.48 million barrels of Russian crude oil, citing "extreme necessity" to prevent severe national fuel shortages.
| Sectors | Oil, Refining |
|---|---|
| Themes | Policy & Geopolitics, Energy Security, Investments & Transactions, Contracts |
| Countries | Philippines, Russia, Iran, United States, Japan |
Petron, the Philippines' only oil refinery, announced in a stock exchange disclosure dated March 27 the purchase of 2.48 million barrels of Russian crude oil. The company cited "extreme necessity," describing the purchases as "an extraordinary emergency measure in response to unprecedented geopolitical and logistical disruptions." The company stated it had exhausted all commercially and operationally viable alternatives before proceeding with the purchases.
Hormuz Blocked, Four Million Barrels Cancelled
Since the start of the conflict involving Israel, the United States, and Iran on February 28, Petron has seen deliveries of at least four million barrels of crude oil cancelled. Iran's de facto closure of the Strait of Hormuz, through which normally 20% of the world's hydrocarbon production flows, has heightened tensions on strategic maritime oil routes in the region. Fuel prices have risen sharply in the import-dependent archipelago, sparking protests by drivers.
Petron justified its recourse to Russian crude by pointing to the risks of halting its operations. The company warned that a refinery shutdown "would result in severe nationwide fuel shortages and a sharp price spike." According to its statements, the refinery covers 30% of the country's fuel needs.
Stocks Secured Through June 2026
The Russian crude purchased, combined with existing stocks, would allow Petron to increase its petroleum product reserves through June 2026, according to the company. President Ferdinand Marcos Jr. indicated late last week that the Philippines had crude oil reserves through June 30. A vessel carrying more than 700,000 barrels of Russian crude arrived in the archipelago the previous week, after the country declared an "energy emergency."
The United States relaxed certain sanctions in March, authorizing the purchase of Russian oil currently at sea through April 11. The Philippine Department of Energy also announced the arrival of 142,000 barrels of diesel ordered by the government. Minister Sharon Garin confirmed the delivery came from Japan.
