The Manila Times
THE Philippines’ sole oil refinery has secured nearly 2.5 million barrels of Russian crude out of “extreme necessity,” a stock exchange filing revealed Monday, as the country seeks to replenish fast-dwindling fuel reserves. The Philippines has seen the price of fuel hit historic highs since the US-Israeli war with Iran forced the partial closure of the Strait of Hormuz, with President Ferdinand Marcos Jr. most recently saying stocks could last until June 30. Agence France-Presse (AFP) reported last week that a tanker filled with Russian crude oil had arrived at the harbor servicing refinery operator Petron Corp., a purchase unthinkable before longtime treaty ally the United States eased sanctions tied to Moscow’s war in Ukraine. In a report to the Philippine stock exchange released Monday, Petron said it had agreed to purchase Russian crude after seeing at least 4 million barrels in shipments canceled since the start of the Middle East war. “The purchases were undertaken strictly out of extreme necessity as an extraordinary emergency measure in response to unprecedented geopolitical and supply-chain disruptions and only after exhausting all commercially and operationally viable alternatives,” the report reads. “A refinery shutdown for failure to secure crude would lead to serious nationwide fuel shortages and sharp price spikes,” said the company, whose refinery accounts for about 30 percent of the country’s fuel needs. Since the war began, the cost of diesel and gasoline has skyrocketed, driving protests by groups representing the country’s jeepney drivers and others. Prices were set to tick up again on Tuesday. The United States earlier this month eased some restrictions on sales of Russian crude, allowing countries to purchase oil that was already at sea until April 11. The Philippines’ Department of Energy last week announced the arrival of 142,000 barrels of government-procured diesel, part of its target of “up to 2 million barrels of additional supply for the country.” Energy Secretary Sharon Garin said that shipment had come from Japan. Petron on Monday said that it may continue to purchase Russian oil to augment the national fuel supply if the war in the Middle East persists. “We would like to disclose that if the current crisis persists and alternative crude sources remain unavailable or insufficient, we may again be compelled to consider purchases of Russian crude oil to augment the national fuel and directly mitigate the inimical consequences resulting from the absence of a stable and reliable source of crude,” Petron said. “Any initiative taken by the corporation shall be made in close coordination with the Philippine government and would be guided by the overriding objective of ensuring energy security for the country,” it added. Petron emphasized, however, that the procurement of Russian crude oil is not part of its business-as-usual strategy, and that the purchase was made strictly as an extreme necessity due to the war in the Middle East.
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