Petron Corp., the Philippines’ sole oil refiner, has procured 2.48 million barrels of Russian crude oil to shore up the country’s fuel stocks following the closure of the Strait of Hormuz and the declaration of a state of national energy emergency.

In a disclosure to the Philippine Stock Exchange on Monday, March 30, San Miguel Corp.’s refiner unit, which accounts for about 30 percent of the domestic fuel market, said the move was an “extraordinary emergency measure” necessitated by the outbreak of military conflict between the United States (US), Israel, and Iran.

The geopolitical escalation effectively severed the Philippines’ primary energy artery, as approximately 98 percent of the nation’s crude imports are typically sourced from the Middle East.

In a regulatory filing, Petron disclosed that two separate shipments, totaling four million barrels of crude, were lost in early March. The first shipment was blocked after the Islamic Revolutionary Guard Corps Navy closed the Strait of Hormuz to merchant vessels, while a second was canceled on March 7 due to escalating risks in the Red Sea.

The supply shock prompted President Marcos to issue Executive Order No. 110 on March 24, formalizing a state of national energy emergency and directing companies to secure alternative sources to prevent an economic standstill.

The procurement of Russian oil representsw was a pivot for Petron, which emphasized that the purchase is not part of its standard sourcing strategy.

The company stated it acted only after “exhausting all commercially and operationally viable alternatives” to prevent a total refinery shutdown.

Petron warned that failure to secure crude would have triggered nationwide fuel shortages, panic buying, and severe disruption to the country’s logistics and public services.

The transaction was executed with the coordination of the Department of Energy and the Department of Finance. Furthermore, the Bangko Sentral ng Pilipinas issued a letter on March 12 confirming that there are no domestic legal prohibitions against sourcing foreign currency for such import transactions. The government has remained supportive of the move as it seeks to stabilize local prices and maintain energy security amid the regional volatility.

Petron indicated that the current Russian inventory will supplement supplies through June 2026. However, the refiner noted that if the Middle East crisis persists and other sources remains unavailable, it may be compelled to consider further purchases of Russian crude to mitigate “inimical consequences” to the Philippine economy.