Philippines Refinery Buys Russian Crude
Petron Corp, the Philippines’ only oil refinery, has secured nearly 2.5 million barrels of crude from Russia after losing access to around 4 million barrels in cancelled shipments since the start of the US-Israel war on Iran. The move reflects the growing pressure on Asian fuel markets as the conflict disrupts normal crude flows and pushes countries to seek emergency alternatives.
Petron Secures Russian Crude Supply
Petron said the Russian crude purchase was made as an emergency step after commercially viable alternatives were exhausted. The company described the deal as necessary to prevent a refinery shutdown, warning that any failure to secure crude could trigger serious fuel shortages and sharp price spikes across the Philippines. Petron’s refinery is especially important because it accounts for about 30 percent of the country’s fuel needs.
Iran War Disrupts Oil Shipments
The company said at least 4 million barrels in expected shipments were cancelled after the war began, forcing it to act quickly to protect domestic supply. The development shows how the Iran conflict is affecting energy security well beyond West Asia, with import-dependent countries facing sudden supply disruptions, rising freight uncertainty and higher costs across oil markets.
Philippines Fuel Stocks And Price Pressure
The Philippines government said that as of March 27, the country had gasoline stocks for 53 days, diesel for 45 days, kerosene for 97 days, LPG for 23 days and jet fuel for 38 days. Based on 2024 estimates, daily diesel consumption stands at 201,927 barrels per day. Fuel prices have already doubled since February 28 and are expected to rise again, underlining the urgency behind Petron’s emergency crude purchase.
