The Philippines has purchased a total of 2.48 million barrels of Russian crude oil amid fuel resupplying problems caused by the Middle East conflict, now in its second month.
"Acting out of extreme necessity and considering the abrupt cut in supply, the Corporation was thus constrained to procure Russian crude oil, which at that time was available and the only viable crude, to protect not only its interests as a company but, more importantly, the security and interests of the nation," said Petron Corp., the country's only refiner, according to the local daily BusinessMirror.
If Petron had not carried out the procurement, it said, there could have been "a refinery shutdown for failure to secure crude," possibly leading to "serious nationwide fuel shortage, sharp price spikes, panic buying, disruption to transportation and logistics, and broader economic dislocation."
Ramon Ang, the refiner's CEO, also said that they have "healthy supplies of finished products" that will last up to "June 30."
The Southeast Asian country imports 90% of its oil from the Middle East and paid $16 billion for oil in 2024, according to The New York Times.
The Strait of Hormuz has been effectively disrupted since early March. Around 20 million barrels of oil normally pass through it daily, and its disruption has driven up shipping costs and pushed global oil prices higher.
The US earlier decided to ease oil sanctions against Russia due to the price shock caused by the Iran war.
Since Feb. 28, the US and Israel have carried out an air offensive on Iran, killing more than 1,340 people, including then-Supreme Leader Ali Khamenei.
Iran has retaliated with drone and missile strikes targeting Israel, as well as Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damaging infrastructure while disrupting global markets and aviation.
