Washington recently eased certain sanctions related to Russia’s war in Ukraine, allowing countries to buy Russian oil already at sea until 11 April to help stabilize global energy markets following the effective closure of the Strait of Hormuz, a critical artery for the global crude trade.
Petron controls about 30 percent of the country’s fuel market and is the dominant integrated oil company.
The Philippines imports nearly all its crude oil needs, around 200,000 barrels per day of various products, with the vast majority coming from the Middle East via long-haul tankers.
Prolonged problem
“We have communicated with the Department of Foreign Affairs for another window or extension of the lifting of the embargo,” Energy Secretary Sharon Garin told reporters, adding that the request had been officially relayed to the United States.
While there has been no US response, “we’re very positive about getting this other window. If it doesn’t come through, we have other options also,” Garin said.
“The Department of Energy sees this current problem as not only a problem for today or next week or next month, it will be a prolonged problem,” she added.
About 30 percent of the Philippines’ crude oil imports depend on supplies that must pass through the Strait of Hormuz.
The rest of the country’s fuel needs are sourced from Asian refiners that are also dependent on Middle East crude.
The supply crunch has caused local pump prices for key products like diesel and gasoline to double.
If it fails to secure additional Russian crude, Garin said the DoE would look at other sources like Colombia, Canada and the US.
While these countries supply different types of crude, “we can still use their refined products,” she said, adding that the Philippines would also consider nearer suppliers such as Brunei and India.
“We wanted to open the Russian window, but we want more options. We need diversification so that we are not dependent on only one country,” she said.The country has around 50 days’ worth of supply, Garin added.
