Beijing holds fuel ace over Manila

The Philippines is banking on China not using its fuel exports as leverage despite the rising tensions in the West Philippine Sea (WPS), even as global uncertainties tighten energy markets.

The Department of Foreign Affairs (DFA) acknowledged that China’s role as a key supplier of refined petroleum products places it in a position of influence.

Foreign Affairs Secretary Ma. Theresa P. Lazaro pointed to the ongoing negotiations between ASEAN and China on a Code of Conduct (CoC) in the South China Sea as a stabilizing factor in the bilateral and regional relations.

Lazaro spoke on the sidelines of the Federation of Philippine Industries 2.0 forum in Taguig City.

“With the negotiations going on, on the Code of Conduct between ASEAN and China, I don’t think so. I am just very forward-looking. There are still a lot of good discussions,” she said.

China earlier announced restrictions on fuel exports starting this month to secure its domestic supply amid the escalating tensions in the Middle East, including the disruption in the Strait of Hormuz, a critical route for global oil shipments.

While the Philippines does not rely on China for crude oil, it depends on regional hubs such as China, Singapore. and South Korea for refined petroleum products.

Supply search

The Philippines, as ASEAN chair in 2026, is pushing for the completion of a “substantive and effective” CoC consistent with international law, particularly the United Nations Convention on the Law of the Sea, to manage disputes and prevent conflict in the South China Sea.

Amid concerns over the oil supply, President Ferdinand Marcos Jr. has directed the DFA and the Department of Energy to identify alternative fuel sources, as the country’s buffer stock is projected to last only until the end of April.

Foreign service posts have been instructed to engage host governments and energy ministries to explore supply options, leveraging the Philippines’ diplomatic ties.

The President also assured the public that the government is implementing measures to cushion the impact of rising oil prices. He acknowledged that volatile oil prices continue to complicate planning but maintained that supply levels remain sufficient.

“We are securing the supplies of oil. We are securing the supplies of food. As much as possible, the public should not worry. We are securing the supply of oil and food,” he said in Filipino.

Meanwhile, the Department of National Defense on Thursday rejected China’s claim that Philippine operations near Bajo de Masinloc were “a self-directed farce,” asserting that these were lawful and within the country’s sovereign rights under international law.

The West Philippine Sea, including Bajo de Masinloc, remains a flashpoint between Manila and Beijing despite the 2016 arbitral ruling that invalidated China’s sweeping claims.

The National Maritime Council also dismissed China’s use of a supposed 1990 document to support its claims, calling it misleading and from a “doubtful source,” and reiterated that the Philippines’ sovereignty over the shoal is “longstanding, consistent, and indivisible.”