House Minority Leader 4Ps Party-list Rep. Marcelino “Nonoy” Libanan finds nothing wrong with Petron Corp.’s procurement of 2.48 million barrels of low-priced crude oil from Russia amid fuel price and supply concerns.

“We are under a state of national energy emergency, and any additional supplies of petroleum products, regardless of source, are most welcome,” Libanan said in a statement Tuesday, March 31.

“We want Petron to succeed in its crude oil refinery operations, considering that it supplies 30 percent of the country’s retail market demand for finished fuel products,” Libanan added.

“There’s no question that we would have a bigger problem if Petron—our primary supplier of diesel and gasoline at the pump—were to suddenly run out of products to sell,” he pointed out.

Petron operates the Philippines’ only crude oil refinery in Limay, Bataan, producing diesel, gasoline, LPG, kerosene, and other finished fuel products.

Libanan also said that Petron, as a private corporation, has the flexibility to source crude oil globally. “Petron is free to import crude oil from anywhere, as long as it is not violating any laws here and abroad."

Petron likely acquired the Russian crude at a discounted price, the House leader noted.

Under existing sanctions imposed by the G7, European Union, and allied countries following Russia’s invasion of Ukraine, a $60-per-barrel price cap has been imposed on Russian crude oil.

The mechanism allows countries outside Europe to procure Russian oil using Western shipping and insurance services, provided the purchase price does not exceed the cap.

The policy aims to reduce Russia’s war revenues while maintaining stability in global oil supply.

Russia produces more than 10 million barrels of crude oil per day, maintaining its position as one of the world’s top three oil producers alongside the United States (US) and Saudi Arabia.

In a disclosure to the Philippine Stock Exchange on Monday, Petron said the 2.48 million barrels of Russian crude “will augment the corporation’s petroleum product inventory until June 2026".

The company warned that failure to secure adequate crude supply could have severe consequences.

“A refinery shutdown for failure to secure crude would lead to serious nationwide fuel shortages, sharp price spikes, panic buying, disruption to transportation and logistics, and broader economic dislocation—outcomes that would have serious consequences for households, businesses, and critical public services in a country that is highly dependent on imported fuel,” Petron said in its disclosure.

Petron added that it coordinated closely with the Department of Energy (DOE) and the Department of Finance (DOF) in securing the supply from Russia, and noted that both agencies encouraged oil companies to explore alternative crude and finished product sources.

The company also signaled the possibility of additional purchases of Russian oil in the weeks ahead if the current global supply constraints persist.

Petron is majority-owned by businessman Ramon Ang’s San Miguel Corp. (SMC). At least 28 percent of Petron’s common shares are held by public investors.