PH has enough crude oil supply until June 30, Marcos says

2026-03-27 - 06:40

CAGAYAN DE ORO, Philippines – President Ferdinand Marcos Jr. said on Friday, March 27, the country has enough crude oil to last until the end of June, an assurance given amid mounting concerns over global supply disruptions caused by the escalating conflict in the Middle East. He said he had talks with business tycoon Ramon Ang whose company, Petron Corporation, is bringing in crude oil for processing. “Iba ang presyuhan kapag nagpasok tayo ng krudo mismo, ng diesel, kaysa sa nagpasok tayo ng crude oil at tayo ang mag-refine,” Marcos said at the opening of the Ninoy Aquino International Airport Expressway-westbound off-ramp to NAIA Terminal 3 project. Marcos added, “Mas mahal ‘yung magpapasok ka ng refined na, na diesel na. At ika niya ay mayroon na tayong supply of crude oil, sufficient supply hanggang June 30,” he said. (The pricing is different when we import crude oil ourselves for refining compared with importing diesel that is already refined. It is more expensive to import refined diesel, and he [Ang] said we already have a supply of crude oil sufficient until June 30.) Play Video The Department of Energy (DOE) announced on Thursday, March 26 the first shipment of around 22.5 million liters of diesel or 142,000 barrels of additional fuel under its Emergency Energy Security Program. The agency was apparently referring to the crude oil that Petron imported with the help of state-owned Philippine National Oil Company. Based on the Philippines’ diesel consumption of around 201,926 barrels per day in 2024 (based on DOE’s petroleum product demand data), this first shipment would be good for less than a day. Representatives of petroleum companies in the Philippines, told a Senate hearing on Thursday, March 26, that securing supplies to replenish their inventories was getting difficult, and that the Philippines’ fuel importation after April or in a little over 30 days is not assured. They also said the fuel export bans being imposed by a number of exporting countries make fuel trading more unpredictable. Must Read Petroleum companies sound alarm on Philippines’ limited fuel supply Petron Corporation general manager Lubin Nepomuceno told senators that it’s been “very challenging, to procure additional crude and finished products.” “Suppliers are bidding out available volume resulting in higher replacement costs. In addition, other costs including freight, import premiums, and insurance have substantially increased,” he said, projecting that landed costs will soon be “astronomical.” Meantime, Marcos also said the government was exploring all possible measures to blunt the impact of the conflict. “Nothing is being discounted, ibig sabihin lahat ng maaaring gawin upang mayroon tayong magawa para tulungan na pagaanin ang epekto ng gyera sa Middle East ay pinag-uusapan,” Marcos said. (Nothing is being discounted, meaning everything that can be done to help ease the impact of the war in the Middle East is being discussed.) Marcos said the government would continue to seek more supply while supporting commuters facing higher transport costs, Marcos said, as tensions in the Middle East disrupt global oil flows and push prices higher. The government, he added, was focusing on immediate concerns such as providing immediate aid to people adversely affected by the crisis. “That is what we are doing and thinking about now,” he said. “Kahit lahat ng maaaring gawin ay tinitingnan namin, pinag-aaralan namin (We are looking into and studying everything that can be done).” Amending the oil deregulation law, he said, would require lengthy discussions, and “I don’t know when that will come out.” A day earlier, the Energy Regulatory Commission (ERC) suspended the wholesale electricity spot market across all grids, citing the need to manage supply risks and price spikes from the Middle East conflict. The move, according to a Reuters report that quoted the ERC, aims to keep energy stable and protect consumers from higher costs. During the suspension, the power system will follow special guidelines from the Department of Energy, with a temporary pricing mechanism in place. The final pricing system is expected by April 1. – Rappler.com