Petron Corporation, the country's only oil companyfiNer said it had secured 2.48 million barrels of crude oil from Russia to boost its petroleum product inventories through June.
In a statement on Monday, Petron said it may consider repurchasing Russian crude if fuel supply disruptions continue and it is unable to supply Russian crude.marginal forceTo obtain crude oil from other suppliers to increase the country's fuel supply.
The company said purchasing Russian crude is not its normal practice and the purchase was made “out of extreme necessity” as an extraordinary energy measure amid supply chain disruptions.
It said it has turned to sourcing from one of the world's top exportersfoot“All commercially and operationally viable options are being exhausted.”
Petron said it faced shipping disruptions for a previous two million barrel crude order following the closure of the Strait of Hormuz, a key global oil transit route, amid rising tensions in the Middle East.
the company said fiThe first shipment was unable to pass through the strait, while the second shipment was canceled due to increased risk in the Strait of Hormuz and the Red Sea.
As the country's largest downstream oil player and sole refiner, Petron said disruptions to a key shipping route forced it to purchase Russian crude to help secure domestic fuel supplies.
Petron's RefiNeri in Bataan has a capacity of 180,000 barrels per day and supplies about a third of the country's fuel demand.
“Refinery closures due to failure to secure crude oil would result in severe nationwide fuel shortages, sharp price increases, panic buying, disruptions in transportation and logistics, and widespread economic dislocation, with dire consequences for households, businesses and vital public services in a country highly dependent on imported fuels,” the company said.
The company said it coordinated with the Department of Energy and the Finance Department, which encouraged oil companies to secure alternative sources of crude oil and finished products.
Petron also said it received confirmation from the Bangko Sentral ng Pilipinas in a March 12 letter that there are no domestic legal restrictions on the import of Russian crude.
The Philippines is looking for alternative fuel sources as supplies from the Middle East, a major oil-producing region, are disrupted due to the ongoing conflict with Iran.
The United States has temporarily eased some sanctions on Russian oil to help boost global supply amid disruption to key shipping routes.
Russian Deputy Prime Minister Alexander Novak had earlier instructed the Energy Ministry to draft a proposal banning gasoline exports from April 1 to July 31, Reuters reported, citing the state-run TASS news agency.
The Philippines was placed under a state of national energy emergency effective March 24 in response to risks to the country's energy supply.
Petron Chairman and Chief Executive Officer Ramon S. Ang earlier renewed a proposal to sell the company back to the government as the country grapples with supply issues and rising fuel prices. — Sheldin Joy Talavera